Presentation on Eicher Motors Ltd

Investor Presentation

Eicher Motors Ltd.

JOINT INVESTORS MEET March 28th, 2012 | Pithampur

Siddhartha Lal MD & CEO, Eicher Motors Ltd.


In this Presentation

1. Eicher Motors Limited

Journey so far

EML: Overview

2. Royal Enfield

3. VE Commercial Vehicles Limited

4. Financials

2 Joint Investors Meet Presentation 1


1959 1984 1991 1993 2002 2005 2008

Eicher Motors Limited Journey so far

Indias first tractor rolls out of Eicher factory in Faridabad

JV with Mitsubishi Motors to make Canter trucks

JV with Mitsubishi ended, enters MD bus segment

Divests tractor and allied businesses to focus on CV and motorcycle businesses

Royal Enfield motorcycles acquired

Enters HD trucks segment

Forms JV with AB Volvo of Sweden; transfers CV business to the JV



EML

AB Volvo

Retail Investors Institutional Investors

Promoter Group

Eicher Motors Limited Overview

8.4%

11.5% 24.9%

55.2%

VE Commercial Vehicles Ltd.

Royal

Enfield

45.6%

54.4%



Eicher Management Philosophy

An evolved business model with 50+ years of experience in automotive space in India, that:

In-depth customer insights and market understanding

Best-in-class Capital Optimization:

Frugal engineering practices

Extensive knowledge of suppliers

Operational Excellence Global Quality Standards

Break-through Market Business Model

Fully empowered management teams

Regular board meetings, every two months - full review with management

Strategic quarterly reviews and regular monthly operations review

Product board, Quality board, Customer Satisfaction board, Soft products board (after-market) held every quarter along with other statutory meetings

Established Corporate Governance

Corporate conduct rooted in highest standards of ethics, integrity and transparency

Highly professional work ethic based on mutual respect

Very strong HR and IR culture and brand

Long-term orientation

Long history of institutionalized CSR and community activities

Strong Values


Investor Presentation Joint Investors Meet Presentation 5

S Sandilya

Non Executive Chairman

Siddhartha Lal

Managing Director & CEO

MJ Subbaiah

Independent Director

Priya Brat


Prateek Jalan


R L Ravichandran

Executive Director

Established Governance Structure: EML Board


Moving forward...


ROYAL ENFIELD


Royal Enfield Bullet is the longest running model in continuous production. Royal Enfield Motorcycles are unique in terms of the engine character - Single Cylinder, Air-Cooled, Push-rod &Valve operated for the distinctive Bullet beat. The authentic vintage styling , traditional paint schemes, 1950s style, nacelle and toolboxes contribute to its distinctive classic appeal.

Royal Enfield

1901: Royal Enfield rolls out its first Motor Cycle

1955: Enfield India is incorporated.

1994: Eicher Motors acquires Enfield India Ltd.



After successfully managing 2010, the year of transition,

Royal Enfield continues to grow and evolve

Bullet Thunderbird Classic

27

10606

14871

0

10

20

30

40

50

0

5000

10000

15000

20000

YTD Feb '11 YTD Feb'12

Gro

wth

(%

)

Sale

s V

olu

me

(un

its)

4.1 1.7

5.5 7.2

12.7 17.7 20.0

1.2

41.9

0

5

10

15

20

25

30

35

40

45

0

10000

20000

30000

40000

50000

60000

70000

80000

2003 2004 2005 2006 2007 2008 2009 2010 2011

Gro

wth

(*

%)

Sale

s V

olu

me

(un

its)

Sales Volume

Growth (%)

40.2

Joint Investors Meet Presentation 8

Transition of all models to UCE

platform; Surge in demand Introduced UCE engine in Bullets

export model & launched Classic 500 with UCE

Demand continues to be ahead of capacity; optimising production in TVT; commencement of capacity

expansion at new site in Oragadam


Market Trading Up

Upper end segment, less price sensitive,

growing

Rich Heritage

Enhanced Product Removed perceptual &

physical purchase barriers

Practical Leisure Motorcycling

Uniquely differentiated offering

Sold as a leisure bike; bought as a practical bike



Thriving in Community: Both physical & virtual



Plans being executed for profitable growth

Enhance production for CY 2012 to 1,00,000 units;

Capacity increase to 150, 000 pa after start of commercial production from new site at Oragadam, Chennai, India from 1st half, 2013

Focus on cost management

Exploit significant opportunities after market

Thunderbird 500 launch planned in Q2, 2012

Caf Racer to be launched in Q1, 2013

Accessories launch planned in Q2, 2012

Increase reach in India and global markets

Currently, there are 175 distribution and after market points in India. Exports to more than 30 countries

Enhance production capacity

Improve profitability

New product launches

Distribution and after market footprint


Investor Presentation Joint Investors Meet Presentation 12

Future: Caf Racer


Moving forward...


VE COMMERCIAL VEHICLES Ltd. (VECV)


VECV was established in 2008 with strong parentage

Volvo strengths

Global expertise

Leadership in product

technology

Good infrastructure

facilities

Well-defined processes

and controls

Brand image and

customer relationships

Eicher strengths

Leadership in LD / MD

segments

Specialist skills and

experience in developing

low cost, better

performance products

Wide dealer network

After sales infrastructure

for LD / MD

Cost effective operations

VECV vision

To be recognised as

the industry

leader driving

modernisation in

commercial

transportation in

India and the

developing

world Eicher transferred its CV, components and engineering solutions businesses into VECV

Volvo demerged Volvo Truck Indias sales & distribution business from Volvo India Pvt Ltd.



Dec 2007: Signing of Letter of intent

May 2008: Signing of definitive agreements

Jul Aug 2008: Commencement of JV

Dec 2008: Volvo Board Visit

Mar 2009: Launch of Quality Improvement CSI-1 Initiative

April 2009: Inauguration of the new gear plant at Dewas

Jan 2010: Launch of VE-series of Eicher HD trucks

June 2010: Launch of MDE Project

October 2010: Groundbreaking ceremony of MDEP plant site

February 2012: Groundbreaking ceremony of Eicher Bus manufacturing plant site at Dhar, Madhya Pradesh

VECV milestones

May 2008: Signing of definitive agreements



VECV Overview

Eicher Trucks & Buses

Volvo Trucks India

Eicher Engineering Components

Eicher Engineering

Solutions

Medium Duty Engine Project



VECV - Wanted position in 2015

Wanted position 2015: Operations

Long term operating margin target >8% over a business cycle

Customer satisfaction to reach >80%

Wanted position 2015: Strategic

4819

26425

4219

2010

17,500

36,400

44,000

2015

0

100,000

60,000

80,000

Sales in units

40,000

20,000 15%

35%

16%

Market

share

(2015)

38181 inclusive of 2717

exports

Bus

LD/MD

HD Seen as a

leading CV group in

India

Recognized competitive advantages

"Best of

both" company culture

Most innovative products covering entire range

Comprehensive network Proactive solution / service

provider

Lean organization

Culture incorporating best of Eicher values and Volvo Way

Professionalism, honesty, people caring to attract best

talents in industry

Best fuel economy Reliable products Superior service quality Safety and comfort setting

industry standards

24

100,000 including 11000

exports



Moving forward...


FINANCIALS


EML Consolidated: Optimising returns on capital

employed and effective cash management


56.1

125.0

77.0

0

20

40

60

80

100

120

140

CY09 CY10 CY11

Return on operating capital employed (%)

7.1

10.0

8.4

0.0

2.0

4.0

6.0

8.0

10.0

12.0

CY09 CY10 CY11

Net Sales/Net Fixed Assets

29,386

43,971

56,775

(563)

(1,289)

(1,815)

-2000

-1600

-1200

-800

-400

-

10,000

20,000

30,000

40,000

50,000

60,000

CY09 CY10 CY11

Net sales Working Capital (excl cash) In INR Million In INR Million

10347

11936

14476

6090

7160

8832

5500

6250

7000

7750

8500

9250

10000

7500

10000

12500

15000

CY09 CY10 CY11

Shareholders fund - Eicher Motors

Shareholders funds - AB Volvo

Investor Presentation 29 Joint Investors Meet Presentation 20

THANK YOU

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Presentation on Eicher Motors Ltd