5/20/2021

Investor
Presentation a

May 2021
 Contents
1 EICHER MOTORS LIMITED – OVERVIEW

2 ROYAL ENFIELD

3 VE COMMERCIAL VEHICLES

4 FINANCIALS

5 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 present ation captures un-audited financials for FY15-16
(April 1 st 2015 to March 31 st 2016).
Maps are not to scale. Representation of maps is for reference purposes only.

INVESTOR PRESENTATION
May 2021
Eicher Motors Limited
OVERVIEW

INVESTOR PRESENTATION
May 2021
 Key Milestones

India’s first Royal Enfield Enters heavy Forms JV* with AB Volvo
tractor rolls out motorcycles duty trucks of Sweden; transfers
of Eicher factory acquired segment commercial vehicle
in Faridabad business to the JV*

1959 1984 1991 1993 2002 2005 2008 2020

JV* with JV* with Divests tractor and allied VECV acquires Volvo
Mitsubishi Mitsubishi businesses to focus on Buses India (VBI); a
Motors to make ended, enters commercial vehicle and prominent player in the
‘Canter’ trucks medium duty motorcycle businesses premium bus segment
bus segment

INVESTOR PRESENTATION
May 2021
Shareholding Pattern (31st March 2021)
Foreign Institutional Domestic
Promoter Group Institutional Others
Investors
49.23% Investors
29.06% 9.08% 12.63%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Eicher Motors Limited (EML)

Volvo Group Business Unit

45.6% 54.4%

Royal Enfield (RE)

VE Commercial
Vehicles (VECV)

RENA (Royal RE Brazil (Royal Enfield

Royal Enfield Royal Enfield
Enfield North Brasil Comercio de
(Thailand) Ltd UK Ltd
America Ltd) Motocicletas Ltda)

Eicher Trucks and

Buses Royal Enfield
Volvo Trucks Canada Ltd
Motorcycles Business
INVESTOR PRESENTATION
May 2021
Eicher Management Philosophy

Break-through emerging Established Corporate Strong Values

market business model Governance

▪ An evolved business model with ▪ Fully empowered management ▪ Corporate conduct rooted in
50+ years of experience in teams highest standards of ethics,
automotive space in India integrity and transparency
▪ Annual 3 year rolling business plan
▪ In-depth customer insights and ▪ Highly professional work ethic
market understanding ▪ Strategic quarterly board meetings – based on mutual respect
full review with management
▪ Best-in-class capital optimization : ▪ Very strong HR and IR culture and
• Frugal engineering practices ▪ Strategic quarterly reviews brand
• Extensive knowledge of andregular monthly operations
suppliers review ▪ Long-term orientation
• Operational excellence
• Global quality standards ▪ Product board, Quality board, ▪ Long history of institutionalized
Customer satisfaction board, Soft CSR and community activities
▪ Low-cost supply chain and product board (after-market) held
distribution – value chain every quarter along with other
statutory meetings

INVESTOR PRESENTATION
May 2021
Board

Eicher Motors Limited VE Commercial Vehicles Limited

S Sandilya Siddhartha Lal
Chairman- Non-Executive and Chairman
Independent Director
Vinod K. Aggarwal
Siddhartha Lal Managing Director and CEO
Managing Director
Jan Gurander
Vinod K. Dasari Director
Whole Time Director and CEO -
Royal Enfield Joachim Rosenberg
Director
Vinod K. Aggarwal
Non-Executive Director Philippe Divry
Director
Inder Mohan Singh Raul Rai
Independent Director
Director

Manvi Sinha Inder Mohan Singh

Independent Director Independent Director

Lila Poonawalla*
Independent Director

*Lila Poonawalla was re-appointed as Non- Executive

INVESTOR PRESENTATION Director w.e.f March 30, 2021.
May 2021
Business Highlights – FY 2020-21^

Debt

0 612,330 94% 20.7% 30.1%

EML continues Motorcycles sold Royal Enfield’s Royal Enfield’s VE Commercial
to be Net debt in FY21, ~12x in market share in EBITDA margin Vehicles market
free& company last 10 years the mid-size in FY21, industry share in domestic
motorcycles* leading margins LMD# segment
segment

Source – SIAM and Company Analysis

& Net debt = Short term debt + long term debt – cash and cash equivalent
^ All figures mentioned are Standalone for period 1st April’2020 to 31st March ’2021
INVESTOR PRESENTATION
May 2021 *Mid size motorcycles refers to engine capacity between 250cc – 750cc
# Light to Medium Duty (3.5 to 15 ton)
INVESTOR PRESENTATION
May 2021
Our Vision is to be a Global Motorcycling Brand
Our goal continues to be to
catalyse and lead the global mid-
size motorcycle market by building
retro-classic motorcycles that are
evocative yet accessible and fun to
ride, and a world of deeply
engaging and frictionless
experiences delivered by us, our
partners, and the ecosystem that
we harness.

INVESTOR PRESENTATION
May 2021
 Launch of “Classic” in 2009 was an Inflection Point

Volumes grew by 27% CAGR during the period Replacement opportunity

CY2010 to FY2021 awaits as most of the sales
happened in the past 6 years

Launch of Launch of Launch of

“Continental GT” “Himalayan” “650 Twins”
Launch of new “Thunderbird” Launch of
and “Apparel and Accessories” “Meteor 350”
900
820 824
Thousands

Transition of all
698
models to “UCE” 666
612
600
508

Launch of
“Classic” 303
300
178
113
53 75
33 37 43 52
0
CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 FY16 FY17 FY18 FY19 FY20 FY21

Note: Standalone volumes for Eicher Motors Limited

INVESTOR PRESENTATION
May 2021
 YTD FY21 Highlights – Eicher Motors Ltd. (Standalone)
All figures are in Rs. Crs unless specified

Sales Volume Market Share* (India) Total Revenue

(in Thousands) Total revenue from operations (net of excise duty)

24.0%

27.0%

24.9%

26.6%

25.9%

7,038

8,958

9,794

9,077

8,619
666

820

824

698

612

FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21

EBITDA and Margins Profit After Tax Net Cash

31.0% 32.0% 35.00%

30.1%
30.00%

24.3%
25.00%
20.7%
20.00%

15.00%

10.00%
2,206

2,853

2,944

2,204

1,787

1,560

1,713

2,054

1,904

1,330

3,187

4,929

5,830

6,762

7,756
5.00%

0.00%

FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21
The figures in % indicate EBITDA Margins
EBITDA Margin = EBITDA/Total revenue from operations (net of excise duty) Net Cash = Cash and cash equivalent – Total debt

Note: PAT for FY18 and FY19 includes an impairment loss of Rs. 311.98 crores and Rs. 17.52 crores respectively on the company's investment in its joint venture, EPPL subsequent
to winding down of operations of EPPL.

* Market share in above 125cc segment

INVESTOR PRESENTATION Source - SIAM
May 2021
 Global

INVESTOR PRESENTATION
May 2021
 Opportunity – Domestic Market
India to become a US$6.5 trillion economy by 2030 India’s favorable demographics
Indian Economy: A shift to a high growth path In 2030, 77% of India’s population will comprise Millennials and
Generation Z
US$ 6.5 Tn

US$ 2.6 Tn

2019 2030f
GDP in USD trillion

Rising income Many India’s will drive consumption growth

The expansion of the middle class and high-income segments will reshape The incremental spend will be led by consumers upgrading to packaged,
future consumption and drive incremental consumption of US$ 4 trillion by branded or higher priced offerings
2030 US$ 5.7 Tn
US$ 1.9 Tn*

US$ 4,063

US$ 1.2 Tn
US$ 1,336

US$ 1.5 Tn

2019 Per Capita GDP 2030f

Source: World Economic Forum - Future of Consumption in Fast-Growth Consumer Markets:

INDIA, 2019, FICCI; CBRE Research, Q2 2019 Source: *Worldbank

INVESTOR PRESENTATION
May 2021
India - Industry Overview

Motorcycle Volumes (India) in mn Royal Enfield Market Share*

and Share of 125cc+ segment in % (India)

24.5% 23.6% 23.7% 22.1% 22.1% 30%

20%

10%

0%

27.0% 26.6% 25.9%

-10% 24.0% 24.9%
-20%

-30%
11

13

14

11

10

-40%

-50%

FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21

India - largest motorcycle Premiumisation theme in motorcycle

market in the world market to continue

* Market share in above 125cc segment

INVESTOR PRESENTATION Source - SIAM
May 2021
 Winning in Many Indias - Market & approach Clustering
RE market share in above 125cc motorcycle segment

RE <26% RE >26%

HIGH LOW HIGH HIGH

Share of 125cc+ segment in motorcycle industry

POTENTIAL PENET RATION POTENTIAL PENET RATION

Andhra Pradesh, Telangana, North East, Orissa,

Himachal Pradesh, Jammu & Kashmir, Uttarakhand,
>23.5% West Bengal, Karnataka, Maharashtra, Tamil Delhi, Chandigarh, Goa, Kerala
Nadu

OBJECTIVE: OBJECTIVE:
DRIVE AWARENESS AND TRIAL @ SCALE DRIVE DIFFERENTIATION

LOW LOW LOW HIGH

POTENTIAL PENET RATION POTENTIAL PENET RATION

<23.5% Haryana, Punjab, Rajasthan, Madhya Pradesh, Uttar

Bihar, Jharkhand
Pradesh, Gujurat, Chattisgarh

OBJECTIVE: OBJECTIVE:
DRIVE ACCESSIBILITY DRIVE ASPIRATION THROUGH LIFESTYLE

INVESTOR PRESENTATION
May 2021
India Footprint
1,025 stores and 1,031 studio stores across 1,750 cities

Dealer Network
Store count Large Size Stores Studio Stores
 Large stores Total
 Studio stores 2,056
North

1,031
324 | 359

600

1,025
675

825

915

921
527
East FY16 FY17 FY18 FY19 FY20 FY21
186 | 226
West
208 | 184 City Category wise Distribution
Category* Store Count

South >1,000 229

307 | 262
Chennai Between 200 and 1,000 339
 Corporate Office
 Technology Centre Up to 200 457
 Manufacturing Facilities
• Tiruvottiyur Studio Store 1,031
• Oragadam
• Vallam Vadagal Total 2,056

INVESTOR PRESENTATION *Industry volume of >125cc engine size motorcycle per month
May 2021
Royal Enfield – Studio Stores

▪ Over half of the studio stores are opened

in UP, MP, Rajasthan, Odisha, Bihar,
Andhra Pradesh, West Bengal where RE's
market share is lower than its India
average.

▪ Provide greater accessibility to sales and

service in up-country markets
▪ 1,031 studio stores opened till March 2021
▪ A unique compact store format
▪ 3S store offering Sales, Service and Spares
▪ Fully compliant with RE’s brand identity

INVESTOR PRESENTATION
May 2021
Royal Enfield Vintage – Opportunity in Pre-owned Motorcycle Segment

Vintage Store opened in Chennai,

Bangalore, Delhi, Mumbai, Patna,
Kanpur, Indore, Patiala, Hyderabad,
Dehradun, Kolkota, Mathura,
Bhadrak, Ghaziabad and Noida
▪ 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

INVESTOR PRESENTATION
May 2021
 Opportunity – International Business
The Oddity of the Motorcycle Industry Globally… is an opportunity
CAGR:2012-18
Most Developing > 750cc
Motorcycles
Industries Markets
-2% Industry
250-750cc 3%
Premium
-2%
Mid Only Mid-sized motorcycle segment
(250-750cc) has grown in the recent
<250cc past in global motorcycle industry
Mass Commuter
Motorcycles

Motorcycle Premium Leisure

Motorcycles
Industry Mid
Royal Enfield's ambition is to lead
> 750cc and grow the under-served global
mid-sized motorcycle segment
(250-750cc)
-1%
250-750cc 5%
Mass Mature -3%
Markets <250cc

Note: Numbers are as per Royal Enfield's research for its priority international markets
INVESTOR PRESENTATION
May 2021
International Footprint
Plan to have about ~175 exclusive stores by end of FY22, already at 132 stores

Developed Markets Developing Markets

Multi Multi
Exclusive Exclusive
Brand Brand
Store Store
Outlet Outlet
North APAC 46 77
1 134
America
Countries with • Malaysia – 1
Countries with exclusive stores exclusive stores • New Zealand* – 1
• USA – 1 • Australia* – 1 • Philippines – 1
• Cambodia – 1 • South Korea* – 1
Marketing Company - USA
• Indonesia – 4 • Thailand – 33
• Japan – 1 • Vietnam – 2
Multi Marketing Company – Thailand
Exclusive
Brand *Developed Markets
Store
Outlet
UK,
Europe, 37 382
UAE Multi
Exclusive
Brand
Countries with exclusive stores Store
Outlet
• Austria – 1 LATAM 48 41
• Belgium – 1
• France – 14 Countries with exclusive stores
• Italy – 3 • Argentina – 10
• Portugal – 3 • Brazil – 13
• Spain – 6 • Colombia – 13
• UAE – 1 • Costa Rica – 1
• UK – 8 • Ecuador – 3
Technology Centers – UK • Mexico – 7
Marketing Company – UK • Dominican Republic – 1
Marketing Company - Brazil
INVESTOR PRESENTATION Assembly Unit – Argentina
May 2021
 International Business - Key Priorities
Network Expansion and Touch Points
New Retail formats - Studio International Business –
stores, Shop-in-shop for Financial Performance over past 5 years
apparel, and motorcycle Opportunity to double the revenue share of "INTERNATIONAL"
displays to increase customer business
reach. Network expansion in
key developing markets to
increase the number of touch
points for customers 12.0%

9.7%
9.1% 10.0%

CKD Setup
8.0%

Evaluating opportunities to set CAGR of 41%

up CKD facility in priority 6.0%

markets in APAC and LATAM

region. Recently set-up a CKD 3.9%
facility in Argentina 3.1% 3.1% 4.0%

2.0%

Product Portfolio 217 281 379 831 847

Expansion
0.0%

FY17 FY18 FY19 FY20 FY21

Launch of new products to
expand the global product
portfolio and presence in new Revenue from international % of Total Revenue
categories. Launched Meteor 350 business (Rs Crs)
in key markets of APAC and
Europe

INVESTOR PRESENTATION
May 2021
 Integrated Product Development Capabilities across UK and India

UK New Product Chennai

Introduction (NPI)
framework in place to
develop best-in-class
products in a minimal
timeframe

Next five year product

pipeline in place

▪ UK Tech Centre at Bruntingthorpe, a hub for the ▪ The Chennai facility has the engineering and
product development and research activities, is design teams of about 260 employees working
driving the mid-range motorcycle platforms. under one roof
▪ A team of over 160 employees comprising ▪ The facility houses hemi-anechoic chamber
engineers and designers with a wide range of and climatic chassis test cell and is fully
international experience in all aspects of integrated with the Technology Centre in the
motorcycle design and development, from UK.
concept to pre-production.
▪ The world-class facilities at these two
▪ Spread across ~36,000 sq ft, the facility employs
technology centres enable Royal Enfield to
state-of-the-art industrial design studio, testing
take full ownership of all aspects of
and validation equipment and workshop
motorcycle design and development.
facilities.

INVESTOR PRESENTATION
May 2021
 Motorcycling

INVESTOR PRESENTATION
May 2021
 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
Continental Interceptor
Bullet Classic Meteor 350 Himalayan
GT 650 650
▪ Longest ▪ Sense of ▪ Easy cruiser with ▪ Purpose-built ▪ Authentic café ▪ The
production distinctiveness British aesthetic and adventure racer quintessential
motorcycle and timeless tourer roadster with
▪ Post-war styling charm ▪ Powered by commanding
▪ Resolute, ▪ Versatile for modern Twin and
unchanged ▪ Timeless design ▪ Comfortable riding on- and cylinder engine
riding position comfortable
form off-road riding position
with easy ▪ Perfect for
▪ Pride of the handling ability ▪ Fully ground-up high speed ▪ Powered by
armed forces with all-new blasts on modern twin
▪ High torque twisty cylinder engine
engine
▪ Iconic cues – and smooth backroads or
thump, power ▪ Fun and
▪ Touring as a stylish
pinstripes, road delivery practical to ride
capabilities motorcycle
presence in almost all
for the city terrains

Traditional and Iconic Urban, Lifestyle and now Adventure

INVESTOR PRESENTATION
May 2021
 Launch of Meteor 350
Purposefully designed to be an easy cruiser, inspiring delight for beginners and experts alike

EASY CRUISER
▪ Easy turning ability ▪ Leant back seating for
relaxed posture
▪ Smooth and refined
engine ▪ Low seat height

True to its British aesthetic, timeless in its charm,

Meteor is every bit a cruiser in style and comfort

With high torque, smooth power

delivery across the band, effortless in
maneuvering tight traffic

Meteor 350 launched in India, Thailand,

UK, Europe and Australia

Click on play button for

INVESTOR PRESENTATION
May 2021
Meteor 350 launch video
Meteor 350 – An Easy Cruiser

STYLE CONVENIENCE TECHNOLOGY

▪ Wide variety of premium Colors, ▪ Low and accessible seat height ▪ New twin downtube chassis
Trims and Graphics (CTG) ▪ Wider tubeless tyres ▪ Engine - New fuel injected air-oil
variants ▪ Padded backrest for better cooled + Counter balancer for a
▪ New design visor and pillion support smooth and refined ride
windscreen ▪ New digi-analog instrument
▪ Retro rotary design switch cluster
modules ▪ Tripper - USB charging +
bluetooth connectivity + turn by
turn navigation system

INVESTOR PRESENTATION
May 2021
Meteor 350 – An Array of Choices for Personalisation
Base Paint Colour Decals and Rim tape

Factory Fit
Flyscreen Side Box Sump Guard

Seats and Backrest

Engine Guard
2
8

Silencers
Footpegs

Badges

Thousands of combinations
Bar End Mirrors
to choose from

INVESTOR PRESENTATION
May 2021
More Choices with the launch of Variants of Classic 350

 Conceptualized in bright new hues and designed to

evoke an engrossing motorcycling experience

Alloy wheels and tubeless tyres bolster

the style quotient

Orange Ember Metallo Silver

INVESTOR PRESENTATION
May 2021
 Product Launches
Launch of variants in new colorways with added features

650 Twins CTG Variants 2021 Himalayan

▪ Launched the 650 Twin Motorcycles in 9 new ▪ The new 2021 Himalayan was launched in three new
colorways distinctive colorways along with additional features of
▪ Available with a host of new MiY options MiY and Royal Enfield Tripper
allowing the customers to personalise and ▪ The new variants come with an improved seat
accessorise their motorcycles cushioning, windscreen and additonal plate on the rear
carrier improving the overall comfort and experience

INVESTOR PRESENTATION CTG – Color, Trim and Graphics

May 2021
Solutions Business - Opportunity
Provide frictionless experience for RE Riders
Explore new revenue / profit pool from adjacencies
In Store Opportunity In Use Opportunity

Spares Annual Maintenance

Contract
Accessories Apparel

Road Side Assistance Extended Warranty

Solutions Business - Financial Performance over past 5 years

CAGR of 17% 11.9% 12.5% 14.0%

10.6% 12.0%

9.4%
8.2% 10.0%

Opportunity to double the

revenue share of
8.0%

“SOLUTIONS” business
6.0%
1,039

1,089

1,091
4.0%
579

841

2.0%

0.0%

FY17 FY18 FY19 FY20 FY21

Revenue from solutions business (Rs Crs) % of Total Revenue

INVESTOR PRESENTATION
May 2021
 Product Portfolio – Apparel

For decades, Royal Enfield motorcycles have been a canvas for custom builds by
individuals and motorcycle builders. Make It Yours (MiY) is a new initiative that
allows customers to customize and personalize their motorcycles. Staying true to
encouraging its users to express freely, Royal Enfield has expanded its unique
Make-it-Yours (MiY) program on its apparel range as well. The new platform
enables consumers to customise and personalize their riding and lifestyle essentials
such as helmets and T-shirts according to their personal preferences and style.
Royal Enfield apparel is focused on continuing to enhance the experiential aspect
for their customers and offer them a more bespoke experience.

THIRD PARTY
FOOTPRINT EXTENSION OF
ONE’S PERSONALITY

In order to expand its accessibility, the business has forayed into the
online retail landscape through its own online store and third-party
Royal Enfield Apparels aim to become an extension of the owners’
online retail channels. During the year, expanded its offline footprint personality. Inspired by the motorcycling way of life, the range is
through the Shop-in-Shop model at “CENTRAL” - a department store
built to help riders explore and express themselves, on and off the
chain across India and are now available across 19 stores. The business motorcycle.
plans to further expand its distribution footprint by partnering with
As more and more customers are taking up the riding culture,
leading retail chains and through omni-channel networks. In the online
space, the Company has a store at Amazon and is available through Royal Enfield Apparel is aiding them to accentuate their lifestyle
Myntra as well.. and self expression.

INVESTOR PRESENTATION
May 2021
32
 Product Portfolio – Apparel

Created a co-branded collection by fusing the unique identities

and values of both the brands. This collection offers the Product
WOMEN’S APPAREL LAUNCH
motorcycling community and other consumers alike a “stylish,
Guided by the spirit of being a pure motorcycling brand, it is only
purposefully designed and affordable apparel. In addition to
natural for Royal Enfield to create a collection of clothing especially
this- functionality, performance and self-expression are the
for the women riding community. Taking inspiration from the
main features in this capsule and have thoughtfully been built
‘motorcycling way of life’, the clothing range has been designed to
into each product.
be aspirational yet accessible and support women in their pursuits
of exploration.

KNOX x RE
In an effort to enhance the product portfolio for the consumers, Royal Enfield and
Knox collaborated to build a high protection, accessible and CE certified external
knee-guard called Conqueror and CE approved jackets globally, as its longstanding
commitment to providing "a pure motorcycling experience" to riders. With utmost
importance to safety, these riding jackets are tested for abrasion resistance,
ergonomics, seam tear and strength. The knee-guard is co-created with an
understanding of a rider's needs, different riding conditions, terrains etc. along
with Knox’s technical expertise and experience in designing and manufacturing
innovative body armours and apparel for motorcycling, upgrading the rider’s
overall experience.

INVESTOR PRESENTATION
May 2021 33
 Product Portfolio – Motorcycle Accessories

Be it aesthetic enhancement or
functional protection, catering to
every individual's need with over
200 products now in portfolio

Complete peace of mind with

a 2 year of manufacturer's
warranty (3 year for Meteor)

This exciting product range is at the forefront of the fabulous "Make it Yours" initiative
and will grow in future providing customers even more options for personalization..!

INVESTOR PRESENTATION
May 2021
After Sales Opportunity

Introduction of a Extended Growing customer Electronic parts

range of products warranty and a base and catalogue and
including AMC, significant increasing parts rebranding
extended reduction in footprints to drive initiative to
warranty, maintenance cost the overall after ascertain all time
roadside to promote longer sales opportunity parts availability
assistance to offer customer and use of
a complete peace retention genuine parts
of mind to
customers

INVESTOR PRESENTATION
May 2021
 Quality - Customer Satisfaction #1

SALES SERVICE PRODUCT

Field Failure – Defects per Hundred Bike

DPHB
2015 2016 2017 2018 2019

Store Layout Service on Wheels Reduction in Defects

Service on Wheels Reduction in Defects
▪ Process excellence ▪ First time right ▪ Adoption of “Shoki Ryudo Kanri
(SRK)” process
▪ Brand retail identity ▪ Extended warranty and AMC for
▪ Digitization of buying experience, better upkeeping of motorcycles ▪ Refinement of “New Product
interactive catalogue ▪ Roadside assistance support in case Introduction (NPI)” process
of a vehicle breakdown ▪ Vallam Vadagal facility received the
▪ Quality of manpower
Frost & Sullivan Gold Award for
▪ Doorstep servicing through launch
Manufacturing Excellence
of “Service on Wheels” initiative
▪ A significant reduction in ▪ Continuous improvements on the
maintenance cost by change of oil basis of inputs from customer, field
team and benchmarking

INVESTOR PRESENTATION
May 2021
 Best-in-Class Technology Delivering Superior Quality
VEHICLE ASSEMBLY ENGINE ASSEMBLY SURFACE FINISHING

▪ SRK methodology for new products ▪ Automated critical sub-assemblies ▪ Best-in-class European technology
▪ Flexibility - Over 500 SKUs in 5 lines ▪ First-time right with 400 Poka Yokes ▪ 46 painting robots
▪ One bike every 50 seconds ▪ 100% Engine - tested and certified ▪ Handles over 50 different shades

MACHINING FABRICATION AUTO BUFFING

▪ Automated buffing for better aesthetics

▪ 300 high-precision machining centers ▪ 100% Robotic welding for Frames
▪ Achieving uniform and consistent finish
▪ World class process capability index ▪ Better control in every process parameters
▪ Engineered dust extraction - clean
▪ Robotic washing for superior cleanliness ▪ Improved ride & handling experience
environment

INVESTOR PRESENTATION
May 2021
 Awards and Achievements

Royal Enfield Meteor 350 won multiple awards including the “Indian Interceptor won the “Best Modern Classic in Middle Weight
Motorcycle of the Year 2021” and “Motorcycle of the Year Award” category” and Himalayan won the “Best Touring Lightweight
at Autocar Awards 2021, BBC Top Gear India Awards and Motoring Award” for the second consecutive year; and Meteor 350
World awards won the “Best Modern Classic over 250cc Award” at the
Thailand Bike of the Year Awards 2021

Interceptor 650 Won MCN’s Best Retro Bike of the Year award, for Royal Enfield’s Vallam Vadagal facility receives the Frost
the second consecutive year. It was also the UK’s highest selling and Sullivan Gold Award for Manufacturing Excellence
‘Naked Motorcycle’ for 2020*

INVESTOR PRESENTATION
May 2021
*Source: As per MCIA data from January 2020 to December 2020
 Make It Yours - Personalisation at the core of a ‘Pure Motorcycling’ experience

“Make It Yours”, a first-of-

its-kind initiative allowing
a buyer to personalise,
accessorise and configure
a motorcycle at booking
stage through an App-
based 3D configurator

MiY offers thousands of Factory-fitted Passing of the Available on the Motorcycle to be

possible combinations genuine cost benefit for Classic, 650 Twins, manufactured
in personalization motorcycle replacement of Meteor 350 and within 24 to 48
options with choice of accessories existing Himalayan. All new hours of booking
colourways, trims, and with a two-year component to motorcycle models made under the
graphics, warranty the customer to come with the MiY initiative
MiY feature

INVESTOR PRESENTATION
May 2021
Make It Yours - A Royal Enfield. Made by you, for you.
Personalise your motorcycle from Day 1. Make it the way you want from style, safety to comfort.

`
Personalise your Give it a unique Cover endless miles
motorcycle your way look with added comfort

Cruise your own Get the joy of a

way. From Day 1. personalized ride

INVESTOR PRESENTATION
May 2021
Make It Yours - 3D Configurator

MiY and 3-D Configurator to be available on Customers to get visibility of delivery timeline
the Royal Enfield App, the website and across of their motorcycle after booking it online
all stores

INVESTOR PRESENTATION
May 2021
Make It Yours - Apparels
Royal Enfield Introduces Make-it-yours Initiative On Apparel

First-of-its-kind personalization tool, the Royal Close to 7,000 unique options to choose from
Enfield Make It Yours, now available across the for customizing helmets and over 15,000
brand’s range of gear and apparel unique options for t-shirts based on individual
style and preference

INVESTOR PRESENTATION
May 2021
Rides and Community
Rider Mania Himalayan Odyssey

▪ Rider Mania is Royal Enfield’s most ▪ The 16th edition of Royal Enfield ‘Himalayan
definitive motorcycle festival and largest Odyssey’ saw 60 motorcyclists ride for 15 days
gathering of RE enthusiast in the world. over 2,200 Km from Chandigarh to Khardung-
▪ In 2019, the 11th edition was held in Goa which La, one of the world’s highest motorable road.
saw highest ever gathering of 8,000 participants.
▪ The event saw launch of the Royal Enfield ▪ The 2019 Himalayan Odyssey takes a step
Slide School to encourage and bring back toward eco-sustainability by promoting zero
the culture of flat-track racing . ‘single-use-plastic-ride’. The riders eliminated
the use of bottled water by using RE installed
▪ The first edition of flat-track racing will be water purifiers for public.
conducted in Bangalore in month of
February.

INVESTOR PRESENTATION Note: Royal Enfield’s Marquee Rides - Rider Mania and Himalayan
May 2021 Odyssey were not conducted in FY 2020 due to COVID-19 pandemic
Bringing People with Allied Interest Together
Royal Enfield Himalayan
Royal Enfield Astral Ride
Adventure Rongbuk

▪ Royal Enfield organized the second edition of ▪ First-of-its-kind Indian manufacturer led
Astral Ride 2021, a one-of-its-kind ride that expedition designed to take the riders to the
combines the passion for photography with base camp of three of the eight thousand-
the spirit of motorcycling, in Rann of Kutch, meter peak - Mount Everest, Shishapangma,
Rajasthan. and Cho Oyu in Tibet, China.
. ▪ In 2019, the 11-day ride was flagged off from
▪ The ride provided an opportunity to the
occasional hobbyist to ride a Royal Enfield Kathmandu with 11 riders to cover a distance
motorcycle and learn nuances of astro- of 1,111 Kilometers covering the Nepal -Tibet
photography. border at Syabrubesi at the altitude of 4,000
metres and above.

INVESTOR PRESENTATION
May 2021
International Rides
Cruise Easy Days International Women's Day

Cruise Easy Days ride was organized to develop “Easy International Women’s Day ride was organized across 6
Cruising” culture in APAC region. The ride was focused countries in APAC region with 60 women motorcyclists
on Meteor 350 motorcycles and the existing actively participating in the ride.
motorcycle consumer base.

Launch of the RIDERS CLUB OF EUROPE

Launch of Royal Enfield's first ever official Riders Club of Europe is

underway. A new community-focused and one-stop-shop for all current
and future Royal Enfield riders, the club will embody all aspects of Royal
Enfield’s “Pure Motorcycling” ethos. Members will be able to enjoy
dedicated rides, brand experiences and event activations right across
Europe.

INVESTOR PRESENTATION
May 2021
Slideschool – An Initiative for Flat Track Motorsport
India and US/Canada

India
▪ Slideschool is a new initiative from Royal Enfield to bring in motorcycling enthusiasts from across the country
to learn and enjoy flat tracking, one of the fastest growing forms of motorsports.
▪ The first ever Slideschool was successfully held at Big Rock Dirt Park in Bangalore in March 2020 and
followed by 3 more batches in June, July and August 2020. These were attended and appreciated by top
automotive journalists across the country.
US/Canada
▪ Royal Enfield debuted the Twins FT (flat track motorcycle based on the 650-Twin platform) motorcycle in
September 2020 to compete in the American Flat Track (AFT) races, - a first in the brand’s modern history
▪ The team Moto Anatomy X Royal Enfield took podium finish in third race at the AFT season Finale at
Daytona Race-Track
▪ Officially announced Slide School in US/Canada with all schools being “sold out” for initial dates

INVESTOR PRESENTATION
May 2021
 Brand

INVESTOR PRESENTATION
May 2021
Oldest Motorcycle Brand in Continuous Production

INVESTOR PRESENTATION
May 2021
Royal Enfield Stores Demonstrating a Unique Brand Retail
Identity
Flagship Store in Tokyo New Delhi, India

Chiang Rai, Thailand Anaila Franco, Brazil

INVESTOR PRESENTATION
May 2021
Royal Enfield Garage Café, Goa

A celebration of exploration - through

motorcycling, food, entertainment and personal
expression
▪ Royal Enfield has set up its first Royal Enfield Garage Cafe in Arpora -
Baga, Goa.
▪ The cafe is an inclusive and engaging space that reflects Royal Enfield
motorcycling way of life and is designed to be a catalyst to deepen
closer association with riding enthusiasts and customers.
▪ The Garage Cafe is a massive 120-seater cafe and also has a Royal
Enfield motorcycle museum-and-exhibition area, an exclusive gear
store, a motorcycle customization area and a service bay.

INVESTOR PRESENTATION
May 2021
Royal Enfield Garage Café, Goa

A unique space that embodies

the pure motorcycling culture
and lifestyle

INVESTOR PRESENTATION
May 2021
Building Brand Appeal and Reaching New Audiences
Bolt On Build Royal Enfield x Bike Shed

Australia, Indonesia and Thailand - Bolt UK - “Lockdown Build” – Royal Enfield collaborated with
On Build customization program with Bike Shed to leverage its reputation to build customized
influencers Royal Enfield bikes that matches the style of Bike Shed

Build Your Own Legend

Build Your Own Legend is a unique initiative inviting motorcycle
enthusiasts to submit their designs for a custom motorcycle based
on the Meteor 350. The theme of the campaign focuses on one’s
imagination, experiences, passion for riding and the never- ending
quest towards self-exploration, demonstrating the brand’s ideals of
individuality, freedom and expression providing inspiration for the
Royal Enfield customers.

INVESTOR PRESENTATION
May 2021
 Digital Engagement with Community
#Meteor350 #MakeItYours
DigitalLaunch
#BikeshedMC
#BuildYourOwnLegend

Average
Total Reach Total
Engagement per
1,190M Engagement
Brand post
103M
10,000+

Engagement
Total Views Rate
#TripStory 844M 8.9%
(Significantly above
industry average)
World Plastic free day

Royal Enfield x Levis #LeaveEveryPlaceBetter #DEEDSNOTWORDS

Note: Date is for 2020 -21

INVESTOR PRESENTATION
May 2021
 Brand Health Report

Top of Mind Awareness Top Two Box Consideration

50 43 42 44 43 90 77 77
40 41 41 42 75 75 75 75 73 76
45 39 80 72 72
38
40 70
35 60
30
50

(%)
(%)

25
40
20
15 30
10 20
5 10
0 0

Average for the Period Average for the Period

 Royal Enfield brand remains strong in the minds of the consumer

 Among the host of brand health metrics tracked by Royal Enfield, ‘Top of Mind Awareness’ and ‘Top Two Box
Consideration’ are key metrics
 Top of Mind Awareness (first spontaneously recalled brand) has improved from 38% to 43% over past two years
 Top Two Box Consideration (purchase intent) has remained above 70%. It increased for the brand with launches of
Bullet X and Classic S during Sep-Oct 2019

Source: 200cc+ brand health track

INVESTOR PRESENTATION
May 2021
Royal Enfield Mobile App Launched

Secured Login MIY Schedule Servicing Motorcycle Guide

3D configurator
(MiY) for Frictionless Do It Personalized Create, Connect Trigger Turn
customers to service Yourself content and share and with rider By Turn (TBT)
customise their experience videos campaigns join rides community navigation
motorcycles

INVESTOR PRESENTATION
May 2021
 Themes for RE’s Sustainability journey

Environmental Social Governance

▪ Water positive ▪ Strategy, execution and monitoring
▪ Ride for a cause
▪ Carbon neutral ▪ Risk management
▪ Disaster relief
▪ Zero liquid discharge ▪ Transparency
▪ Village upgradation programmes
▪ Zero single use plastic ▪ Board composition
▪ Road safety and community development
▪ Focus on increasing share of renewable ▪ Whistleblower schemes
programmes
energy (primarily solar)
▪ Vocational training programmes
▪ Zero wood usage in operations
▪ Automation of labour-intensive processes
▪ Reducing paper usage through digitisation
▪ No engagement of child labour throughout
▪ A greater use of recyclable motorcycle
the company’s value chain
parts

INVESTOR PRESENTATION
May 2021
Passion with Responsibility

Committed to drive an active agenda towards the

sustainability and the environment at large
▪ Village development program at Vallam, Tamil Nadu
▪ Rural electrification and livelihood promotion in remote villages
▪ Clean Air-Better Life: Stubble management in villages in Punjab
▪ Successfully organized Rider Mania and Himalayan Odyssey in 2019 with zero single-use
plastics and with a focus on ‘Leave every place better’, the team collected over 3,000 kgs
of recyclable waste and 450 kgs of biodegradable waste for recycling.
▪ Working on conserving and harvesting water at the manufacturing facilities to turn them
‘Water Positive’.
▪ Planted over 3,000 saplings around the manufacturing facilities.
▪ Organised several ‘Cause Rides’ across the country to try and leave every place better.

INVESTOR PRESENTATION
May 2021
Passion with Responsibility

Europe Australia

Committed to support the affected communities during the

pandemic
• India: INR 25 Crs were spent during COVID to support community. Groceries were supplied to
40K families. Health and safety of employees was ensured by deploying 50+ additional buses to
maintain social distancing and providing medical support.
• Thailand and Indonesia: COVID support was offered to high-need-gap, underprivileged
communities. Rides were organized to support the needy and homeless.
• Europe: A holistic partnership with CALM (Campaign Against Living Miserably) to invite riders to
“OPEN IT UP” about Mental Health - helping motorcycle enthusiasts tackle mental health
issues.
• US: Distributed over 60K masks across the United States. Also delivered 150 Nurse Care
USA package to hospital in Milwaukee.
• France: Building on existing partnership with RARE (Breast Cancer Charity) in France.

INVESTOR PRESENTATION
May 2021
INVESTOR PRESENTATION
May 2021
VECV was Established in 2008 with Strong Parentage

EICHER VOLVO
STRENGTHS STRENGTHS

 Strong player in LMD  Global expertise

segment VECV vision

“
 Leadership in product
 Specialist skills and technology
experience in developing To be recognised as the
low cost, better  Good infrastructure
industry leader driving
performance products facilities
modernisation in
 Wide dealer network commercial transportation  Well-defined processes

 After sales
infrastructure
“
in India and the
developing world
and controls

 Brand image and

 Cost effective customer relationships
operations

Eicher transferred its CV, components Volvo demerged Volvo Truck India’s
and engineering solutions businesses sales and distribution business from
into VECV Volvo India Pvt Ltd.

INVESTOR PRESENTATION
May 2021
 Milestones
AUGUST 2008: Signing of definitive
agreements 2009: Inauguration of the new gear 2009: Launch of CSI-1 quality
component plant at Dewas improvement initiative
Jul-Aug 2008: Commencement of JV

2012: VEPDC inauguration

2012: CED paint shop inauguration 2010: Launch of VE-series of Eicher

HD trucks

2013: VEPT Pithampur

inauguration

2013: Pro Series launch 2013: Start of production at 2013: EEC gear plant, Dewas Unit II
Bus body plant at Baggad (MP) inauguration

INVESTOR PRESENTATION
May 2021
Milestones
2014: Volvo Trucks launch of new range 2014: Inauguration of Eicher retail 2015: Inauguration of ‘Customer Experience
of products comprising FH, FM and FMX excellence center (VECV academy) Center’ and ‘Vehicle display zone’

2017: Inauguration of Transmission 2016: Launch of Eicher Pro 1049

Assembly Line at EEC, Dewas 2017: Pro 5000 Series launch (Sub 5 Ton mini truck)

2018: Successful 10 years of partnership

between Eicher and Volvo
2018: Ground Breaking Ceremony of
EECD ll expansion facility at Dewas 2018: Launch of Eicher Pro 6049 2019: Eicher Pro 2000
and Eicher Pro 6041 series launch in Mumbai

2020: Integration of Volvo Buses India (VBI) 2020: Inauguration and Start of Commercial
with VECV completed w.e.f. 1st Nov’20 Production in “State of the art
manufacturing set up at Bhopal”

INVESTOR PRESENTATION
May 2021
 Historical Full Year Volume and Market Share
Total CV* Volumes and Eicher Light to Medium Duty Eicher Heavy Duty Trucks
Market Share (in nos and %) Trucks (3.5-15 tonne) (16 tonne +)

17.6% 20% 31.5% 31.3% 29.4% 29.5% 30.1%

30% 6.9% 8.0%
14.6%
13.3% 13.3% 13.1% 15% 6.0%
25%

4.9% 5.1%
20%
4.6% 4.5%
10% 15% 4.0%
5%
58,604

65,932

72,969

48,721

41,268
10%

26,027

33,010

37,706

26,707

25,116

11,109

12,372

13,281
2.0%

7,279

7,714
5%

0% 0%
0.0%
FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21

Buses Exports Volvo Trucks

25%

19.9%
17.0% 20%
16.8%
15.6% 14.1%
15%

10%
10,010
12,270

10,494

10,746

8,035

9,001

4,568

5,025

1,163

1,107

1,065
9,060

5%

1055

1226
2,348

0%

FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21

CV* – Commercial Vehicles

INVESTOR PRESENTATION
May 2021 Note: In April 2020, the company's manufacturing facilities and dealerships in India remained closed, in compliance
with the Government directives for nationwide lockdown amid COVID-19 pandemic situation
VECV acquired Volvo Buses India (VBI) in FY21, hence VBI sales volume are included in the bus segment
 Full Year Financial Highlights – VE Commercial Vehicles
All figures are for VE Commercial Vehicles (in Rs. Crore unless specified)

Total Revenue
Total revenue from operations (net of excise duty)

8,553 10,049 11,600 8,524 8,676

FY17 FY18 FY19 FY20 FY21

EBITDA and Margin* Profit After Tax

1200 20%

8.1% 9.1% 8.5% 6.8%

1000
4.9% 10%

800

0%

600

-10%
400

-20%
200

691 919 988 415 592 -30%

0

-200
348 472 475 58 57
-40%

FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21

EBITDA – Earning Bef ore Interest ,Tax, Depreciation and Amortisation

*For the purpose of EBITDA computation, only interest income (part of other income) has been excluded from Total Income
The f igures in % indicate EBITDA Margins
EBITDA Margin = EBITDA/Total revenue from operations (net of excise duty)

INVESTOR PRESENTATION
May 2021
India Facilities – Manufacturing and Operations

Bhopal
Eicher Truck Plant

*Abbreviation:
EEC - Eicher Engineering Components
VEPT - VE Power Train
SEZ - Special Economic Zone
HQ - Head Quarter

INVESTOR PRESENTATION
May 2021
VECV Trucks and Buses Distribution network
Eicher Truck and Bus Volvo Truck and Bus
Network Network

▪ Dealer network 315 nos. including 27 COCO* outlets ▪ Hub and spoke network model

▪ 27 distributors, 100 Eicher Genuine Parts Shoppe and ▪ Sets benchmarks in the industry for vehicle uptime
2,823 multi-brand parts retailers and productivity
▪ 350+ GPS enabled Vans and 79 Container Set up sites

* COCO – Company owned company operated

INVESTOR PRESENTATION
May 2021
Opportunities / Discontinuities VECV EDGE

Stricter emission and Safety Investing early in fully-built

vehicles and emission norms
Stronger regulations
Building products apt for right-load
for overloading
and mild overload conditions

Better infrastructure leading Building more reliable

to higher speeds and mileage engines and driveline
VECV Edge
Increasing influence of Better comfort and
drivers in purchase decision features for drivers

Professionalization of Value-selling, more efficient

transportation and logistics premium products, continued
leadership in FE.
Growing demand in “premium Vehicle quality and after
domestic” segment market excellence

INVESTOR PRESENTATION
May 2021
 Opportunities / Discontinuities VECV EDGE

Availability of trained drivers Driver training and regional

academy

Higher dependence on logistics Developing products aligned with

evolving customer needs – Pro series

Increased pressure on initial Institutionalization of cost

acquisition cost VECV Edge
reduction program, Frugal approach

Increasing need for safe,

ergonomic, superior Frugal approach and inclusive
aesthetics in Buses innovation with Volvo collaboration

Modern technologies, features World-class state of the art

at mass market prices integrated Bus plant

INVESTOR PRESENTATION
May 2021
India’s Only Range of 100% Connected BSVI Vehicles

INVESTOR PRESENTATION
May 2021
Uptime Centre

Image- Image-
1 2
▪ Uptime Center is an industry First Co-Located Sphere ensuring maximum vehicle uptime by providing 24x7 proactive support to
dealerships and customers for part availability and issue resolution. It also provides customers with predictive health alerts on
telematics connected vehicles to avoid unplanned visits and minimize repair time. The service is enabled by:
▪ Remote diagnostic services to ensure lowest repair time
▪ Eicher on- road services to provide 24x7 breakdown assistance
▪ Co-located center for faster response and low resolution time
▪ Superior digital enablement to provide real time status of all vehicles under repair
▪ Proactive monitoring of vehicle health for all connected vehicles
▪ IOT based rule engine for proactive fault prediction in connected vehicles

INVESTOR PRESENTATION
May 2021
 Eicher LMD Trucks: A Significant Player

Eicher Pro 2049

CNG awarded –
LCV of the year

Volumes (including exports)

(in nos)
29 ,0 00
35.00%
29.5% 30.1%
Eicher Pro 3000 series 30.00%
27 ,0 00

25 ,0 00
25.00%

(12-16 Ton GVW)

23 ,0 00
20.00%

21 ,0 00
15.00%

19 ,0 00
10.00%

26,707 25,116 5.00%

17 ,0 00

15 ,0 00
0.00%

FY20 FY21

INVESTOR PRESENTATION
May 2021 71
Eicher LMD Trucks: Launch of Pro 2000 Series
Unveiled India’s first BS VI compliant CV range in Designed to deliver significantly higher profitability,
June 2020 enhanced reliability, safety, comfort and efficiency

Introduction of many industry-first features such as Additional features like low turning radius, longer
all-wheel disc brakes, touch-screen infotainment, body options, fuel coaching and a new cabin for
steering mounted controls and advanced telematics better comfort

INVESTOR PRESENTATION
May 2021
 Eicher HD Trucks: To Leverage Full Potential…..
Achieved market share ~7% in 2020-21, highest in 10 years

Volumes (including exports)

(in nos)

Pro 8000 series

8,0 00
6.9% 8.0 0%

7,5 00
5.1%
7.0 0%
Steadily growing market share
6.0 0%
7,0 00
5.0 0% With over 20,000 trucks on road, the ‘Pro’ series is
6,5 00 4.0 0% gaining more traction with increased interest in
6,0 00
3.0 0% technologically advanced trucks. The Value Trucks
2.0 0% are witnessing good acceptance in the market.
5,5 00

7,279 7,714
1.0 0%

5,0 00 0.0 0% New axle load norms, liquidity crunch, migration to

FY20 FY21
BS-VI norms and current COVID-19 crisis are
affecting the sales.

INVESTOR PRESENTATION
May 2021 73
Volvo Trucks: Market Leader in Premium Truck segment
Volumes
(in nos)

FMX 460 8X4

(Coal Tipper)
Leadership in
1107 1,065
niche segments
FY20 FY21

FM 420 4x2 T
Pioneering tractors
into express cargo
Mining Tipper Construction Tipper Long Haul
FMX460 FM420

INVESTOR PRESENTATION
May 2021 74
 Eicher Buses: Steady Market Share in a Challenging Environment
Volumes (including exports)
(in nos)
25.00%

19.9%
20.00%

14.1%
15.00%

10.00%

5.00%

9,060 2,348
0.00%

FY20 FY21

Note: Includes VBI volume in FY21

Electric Pro E

INVESTOR PRESENTATION
May 2021 75
Volvo Buses India Integrates with VECV
Shaping the future of the Indian Bus Industry

Widest
Coverage
Volvo and Eicher
Brands

Leveraging
Synergy
Product design, purchasing
& manufacturing

New
Opportunities
New segments & E-Mobility

Transferring Volvo Buses India operations and people into

VECV to create an industry leader in Public Transport

INVESTOR PRESENTATION
May 2021 76
Gaining Momentum, Gaining Market Share…

30 units for Pro 5016T – Sri Lanka Pro 2049 – Star Performer in Mauritius

Exports ▪ Moved up to no. 2 position in CV exports in 5-to-40-ton trucks and buses

(in nos) segment
▪ Good recovery in volumes in FY21, 10% growth over previous year
▪ Focus on select segments and bulks helped build market share
▪ Digital engagement and marketing continue to grow – social media reach
exceeded 3 lakh, with enquiry levels at about 300 per month
5,025 ▪ After-market network expansion continues with ~700 touch points
4,568
▪ Pilot supplies initiated to 2 new markets in Africa and Latin America
FY20 FY21

INVESTOR PRESENTATION
May 2021 77
World Class Manufacturing set up...

▪ Capacity to produce ~90,000 trucks from Pithampur plant; new plant at Bhopal inaugurated on 5th Dec’20, Capacity increased to
~130,000 per annum
▪ Production of 41,736 vehicles in FY21
▪ Highly flexible vehicle assembly lines with right blend of technology to control critical parameters catering over 800+ variants
▪ All aggregate lines, Body in White (BIW), paint shop, main chassis lines, machine shop, engine testing and painting, new export line
established with enhanced capacities
▪ New body shop for Pro 2000 and Pro 8000 installed and commissioned successfully
▪ Complex and critical sub assemblies by robots/manipulators ensuring consistent quality levels, fit and finish
▪ State-of-art bus plant spread over 46 acres set up under VECV's overriding vision of driving modernization of the Indian CV market

INVESTOR PRESENTATION
May 2021
Bhopal Plant - State of art manufacturing facility

Power Train Shop Cab Trim Shop Chassis Assembly Shop Inauguration of VECV
Bhopal Plant

• Phase 1 capacity – 40k vehicles per annum (scalable to 100k vehicles per annum)
• Driving modernization - Advance Powertrain and Vehicle assembly lines with right blend of automation
• First BSVI compliant greenfield plant in Indian CV industry
• Plant inaugurated by Madhya Pradesh Chief Minister Shri Shivraj Singh Chouhan on 5 December 2020
• Manufacturing setup and equipment in place, vehicle production has commenced
• Full ramp-up achieved in Power Train plant
• All ancillaries and supply chain in the ramp-up stage
• Driving skill building and efficiency improvement in all areas

INVESTOR PRESENTATION
May 2021
VE Powertrain

• First engine plant in India producing Euro-6 compliant base engine

• Exclusive manufacturing hub for medium duty engine requirements of Volvo
Group
• Current capacity of 50,000 engines, scalable up to 100,000 engines
• Best executed project with Volvo Group technology with frugal approach
• The 5 and 8 liter engines of this platform deliver power ranging from 180 to
350 HP

INVESTOR PRESENTATION
May 2021
Other VECV Business Areas

Eicher Engineering Components

(EEC)
▪ Strategic supplier of drive line components and
aggregates for VECV, The Volvo group, exports and
strategic domestic OEM customers
▪ Production facilities at: Thane, Dewas and SEZ,
Pithampur
▪ Annual turnover of Rs. 820 Crores in FY21

INVESTOR PRESENTATION
May 2021
Other VECV Business Areas

Eicher Non - Automotive Engines

• Presence in 10 countries, Genset Assembly in UAE and South Africa, pan India presence in Genset segment
• Reputed as most reliable and lowest operating cost engines, established in material handling segment
• Engines and drivelines for power, industrial and other off-highway applications
• Providing customised power drive solutions to equipment manufacturers in agro, fire-fighting and
earthmoving segment

INVESTOR PRESENTATION
May 2021
 Key CSR Initiatives
Driver Sanitisation kits with Dr. Shroff Hospital & Delhi Traffic
Police

Food, Mask and Sanitization kits distribution

Trucks Sanitization Drive with
AITWA • Over 1,50,000 meals prepared & distributed
• Meals at Driver Pragati Kendras partnered with IOCL to over
Efforts to help affected society 11,000 drivers.
• Training construction labors through NGO- • Driver sanitization kits distributed in partnership with Dr. Shroff
‘Action Aid’ Hospital & Delhi Traffic Police.
• Sanitization of Labor hutments • Over 2500 ration kits distributed to construction workers
• Helped over 300 families with groceries and • Sanitized over 1000 trucks carrying essential imports at 6
masks locations in partnership with All India Transporters Welfare
• Took proper care of 19 stranded drivers Association (AITWA)

INVESTOR PRESENTATION
May 2021
 Financials

INVESTOR PRESENTATION
May 2021
 Balance Sheet (Consolidated)
(In Rs. Cr.)

Particulars FY16 FY17 FY18 FY19 FY20 FY21

Net Fixed Assets (including CWIP and Pre-
889 1,247 1,835 2, 324 2,690 2,748
operative Expenditure)
Investments 3,384 4,987 5,581 4,923 5,749 3,902
Other Non Current Assets 201 260 186 180 102 125
Current Assets
Inventories 308 336 395 633 572 875
Debtors 33 50 68 90 87 158
Cash and Bank Balances 49 25 1,212 2,965 2,951 5,830
Other Current Assets 76 86 227 271 299 921
Current Liabilities and Provisions 1,205 1,501 2,265 2,098 2,025 2,629

Net Current Assets (739) (1,004) (345) 1,862 1,884 5,155

Total 3,734 5,489 7,257 9,289 10,425 11,930

Share Capital 27 27 27 27 27 27

Reserves and Surplus 3,626 5,318 7,003 7,003 9,954 11,411

Net Worth 3,653 5,345 7,030 7,030 9,981 11,438
Minority Interest - - - - - -
Deferred Tax Liability (net) 36 78 142 274 252 222
Other Non Current Liabilities and Provisions 45 66 85 96 192 270
Borrowings - - - - - -
Total 3,734 5,489 7,257 9,289 10,425 11,930

INVESTOR PRESENTATION
May 2021
 Profit and Loss Statement (Consolidated)
(In Rs. Cr.)

Profit and Loss Account FY16(15M) FY17 FY18 FY19 FY20 FY21
Sales Volume: Two Wheelers (Nos.) 600,944 666,135 820,121 822,724 697,582 609,403
Total revenue from operations (net of
6,173 7,033 8,965 9,797 9,154 8,720
excise)
Manufacturing and other expenses 4,484 4,859 6,157 6,894 6,973 6,939
Earnings before interest, depreciation and
1,690 2,174 2,808 2,903 2,180 1,781
tax (EBIDTA)
EBIDTA to Net Revenue (%) 27.4% 30.9% 31.3% 29.6% 23.8% 20.4%
Depreciation 137 154 223 300 382 451
Earnings before interest and tax (EBIT) 1,553 2,020 2,584 2,603 1,799 1,331
EBIT to Net Revenue (%) 25.2% 28.7% 28.8% 26.6% 19.7% 15.3%
Finance Cost 2 4 5 7 19 16
Other Income 178 227 280 443 543 453
Share of profit of joint venture 188 189 257 258 32 31
Profit before tax 1,917 2,433 3,116 3,297 2,355 1,798
Provision for taxation 539 720 936 1,077 527 452
Profit after tax and share of profit of Joint
1,379 1,713 2,180 2,220 1,827 1,347
Venture from continuing operations
Discontinued Operations: Share of loss of
(46) (46) (220) (18) - -
Joint Venture*
Profit After Tax 1,338 1,667 1,960 2,203 1,827 1,347
PAT to Net Revenue (%) 21.7% 23.7% 21.9% 22.5% 20.0% 15.4%
*NOTE: On March 9, 2018, the Board of Directors of Eicher Polaris Private Ltd. (EPPL), Eicher Motors’ 50:50 joint venture with Polaris Inc., US, decided
to wind down the operations of the EPPL

INVESTOR PRESENTATION
May 2021
 Quarterly Financial Highlights (Standalone)
Eicher Motors – Standalone* performance in last 5 years…
(in Rs. Cr)
900 35.0%
31.8%31.4%31.4%31.9%31.7%32.3%32.3%
30.8%31.3% 30.6%
800 29.6% 29.5%
28.6% 30.0%
27.7% 27.8%
26.1%26.4% 25.9%
700
25.0%25.2% 23.5%
23.6% 25.0%
22.8%
600 22.0%
20.8%

4…
500 20.0%

400 15.0%

300
10.0%
200

5.0%
100
195

251

290

361

367

458

480

552

583

591

628

690

718

817

822

736

692

694

609

546

595

453

658

644
0.2%

1
0 0.0%
Q3'FY15

Q4'FY15

Q1'FY16

Q2'FY16

Q3'FY16

Q4'FY16

Q1'FY17

Q2'FY17

Q3'FY17

Q4'FY17

Q1'FY18

Q2'FY18

Q3'FY18

Q4'FY18

Q1'FY19

Q2'FY19

Q3'FY19

Q4'FY19

Q1'FY20

Q2'FY20

Q3'FY20

Q4'FY20

Q1'FY21

Q2'FY21

Q3'FY21

Q4'FY21
EBITDA EBITDA Margin
* Excludes any income/expenses from Treasury operations, dividend from subsidiary company
EBITDA Margin = EBITDA/Total revenue from operations (net of excise duty)
Note: All numbers post Q4FY16 are as per Ind AS

INVESTOR PRESENTATION
May 2021
 Glossary
▪ CAGR – Compounded Annual Growth Rate ▪ LCV – Light Commercial Vehicles

▪ Consolidated – Consolidated includes financials of Royal Enfield, VE Commercial ▪ LMD – Light and Medium Duty

Vehicles and 50% of Eicher Polaris Pvt. Ltd. ▪ MHCV – Medium and Heavy Commercial Vehicles

▪ CV – Commercial Vehicles ▪ Market Share – Market share in India calculated ex-exports volumes

▪ CY – Calendar Year ▪ MD – Medium Duty

▪ BS IV – Bharat Stage IV ▪ MDE – Medium Duty Engine

▪ BS VI – Bharat Stage VI ▪ Mid Size segment – 250cc-750cc

▪ DIIs – Domestic Institutional Investors ▪ PUV – Personal Utility Vehicles

▪ E – Estimated ▪ RE – Royal Enfield

▪ EBIT – Earnings Before Interest and Tax ▪ SKU – Stock Keeping Units

▪ EBITDA – Earnings before interest Tax Depreciation and Amortization ▪ Standalone – 100% Business of Royal Enfield

▪ EML – Eicher Motors Limited ▪ SIAM – Society of Indian Automobile Manufactures

▪ EPPL – Eicher Polaris Private Limited ▪ Stores – Exclusive Royal Enfield Stores

▪ FIIs – Foreign Institutional Investors ▪ Total Revenue – Revenue from Operations net of excise duty (excluding other income)

▪ GVW – Gross Vehicle Weight ▪ UCE – Unit Construction Engine

▪ HD – Heavy Duty ▪ VECV – VE Commercial Vehicles

▪ IGAAP – Indian Generally Accepted Accounting Principles

▪ IND AS – Indian Accounting Standards

▪ JV – Joint Venture

INVESTOR PRESENTATION
May 2021
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INVESTOR
May 2021
PRESENTATION