Bajaj Auto Investor Meet

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Bajaj Auto Investor Meet Bajaj Auto Investor Meet 1 Bajaj Auto Investor Meet 2 Bajaj Auto Investor Meet Agenda Welcome Address 11:00 – 11:20 KTM Sports Motorcycles 11:20 – 11:40 Domestic Motorcycles 11:40 – 12:00 Commercial Vehicles 12:00 – 12:20 International Business 12:20 – 12:50 Q & A 12:50 – 13:30 3 Bajaj Auto Investor Meet Quick Highlights – Capacity Current Capacity per annum ( units in lakh ) Motorcycles : 54.0 - Waluj 24.0 - Chakan 12.0 - Pantnagar 18.0 Three Wheelers ( Waluj ) 6.0 RE 60 ( Waluj ) 0.6 Total 60.6 4 Bajaj Auto Investor Meet Quick Highlights – Volumes Apr-Nov 14 Apr-Nov 13 Growth Total Volumes : Motorcycles 23,72,882 23,36,467 2% Three Wheelers 3,66,406 3,00,052 22% Total 27,39,288 26,36,519 4% Of which Exports : Motorcycles 10,88,460 8,66,726 26% Three Wheelers 1,96,880 1,68,620 17% Total 12,85,340 10,35,346 24% 5 Bajaj Auto Investor Meet Quick Highlights – Financials Q1 Q2 H1 H1 ( ` in crore ) FY15 FY15 FY15 FY14 Net Sales & 5,299 5,993 11,292 10,171 Operating Income Total Expenditure 4,261 4,745 9,006 7,911 EBITDA 1,038 1,248 2,286 2,260 % 19.6 20.8 20.2 22.2 PBT * 1,075 1,172 2,247 2,250 PAT * 740 853 1,593 1,575 * before exceptional item 2nd highest in the history of the company 6 Bajaj Auto Investor Meet Quick Highlights – Achievements In Q2 / FY15 we achieved our — Highest ever Turnover – ` 6,077 crores — Highest ever Exports – ` 2,736 crores — Highest ever Operating EBITDA – ` 1,248 crores — Highest ever Exports, in units – 5,19,093 — Highest ever Commercial Vehicle, in units – 1,56,429 Ranked in “ top 100 Worlds Most Innovative Companies 2014 ” and “ 5th in top 50 most valuable Indian brands 2014 ” 7 Bajaj Auto Investor Meet Quick Highlights – Operating Margin % 25.0 22.3 20.4 20.2 19.7 19.7 BAL * 20.0 19.0 18.1 17.9 17.9 18.3 15.0 12.4 Hero 10.6 10.6 10.1 10.4 9.7 9.59.7 9.59.9 9.5 10.0 9.1 9.1 9.0 9.39.4 8.2 8.0 8.4 7.4 7.1 7.5 M&M 6.3 4.8 6.2 7.2 Maruti 5.0 4.2 4.3 4.0 4.2 5.3 4.0 3.3 3.2 3.5 3.1 3.5 4.6 TVS 1.5 4.4 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY13 FY13 FY13 FY13 FY14 FY14 FY14 FY14 FY15 FY15 * excluding Mark-to-Market gain / loss and CSR spends 8 Bajaj Auto Investor Meet Quick Highlights – Operating ROCE 220% 206%* 200% 180% 160% 160% 137% 140% 120% 100% FY13 FY14 H1 FY15 * before exceptional item 9 Bajaj Auto Investor Meet Quick Highlights – ROCE Funds Blocked with Excise & Sales tax authorities Excise – Receivable on Exports ` 378 crore VAT Refund Receivable ` 615 crore Total as on 30th September 2014 ` 993 crore Excluding these, our operating ROCE would have been ~400% !! 10 Bajaj Auto Investor Meet Our Business Model Market share in in-city Market Share In 5 years, this segment is ~88% 45% Growth business has EBITDA 20% nearly TRIPLED Margin EBITDA >20% Margin >20% CV Market Spares 11% Share 7% 44% Pulsar EBITDA EBITDA For every motorcycle Growth 18% Margin Margin sold by a Japanese >20% Exports >20% 20% player, Bajaj Auto 46% Platina sells TWICE as many 7% Margin in-line In 5 years, Export with Market New launch Discover volumes have Industry Share in Q4 11% DOUBLED 23% Thus, for 89% of our business, we can expect “ GROWTH with PROFITABILITY ” 32 Bajaj Auto Investor Meet Quick Highlights – Key Drivers Operating Fixed Cost as a % to Opg Income Margins Variable Cost Employee 3.6% 19% Fixed Structure Depreciation 1.1% Cost : 7% Others 2.3% Variable Cost : 74% Working Capital 800 Low CAPEX 600 626 400 345 200 and in crore ` 0 -200 -274 Negative working capital -400 FY13 FY14 H1 FY15 33 Bajaj Auto Investor Meet Quick Highlights – Realization per USD 63.0 62.0 61.5 61.2 60.9 60.9 61.0 59.9 60.0 59.0 58.0 57.0 56.0 55.6 55.0 54.0 Q1 Q2 Q3 Q4 Q1 Q2 FY14 FY14 FY14 FY14 FY15 FY15 34 Bajaj Auto Investor Meet Quick Highlights – Surplus Surplus Cash, as on 30th September 2014 : ` 8,313 crore Investments in FMP : ` 4,940 crore H1 H1 ` in crore FY15 FY14 Dividend received - 27 Treasury Income 136 187 Income from FMP 120 - Total 256 214 35 KTM 36 Bajaj Auto Investor Meet VOLUME TREND (Units Per Month) 3000 2538 2500 2176 2000 1629 1500 1427 1221 947 1000 889 814 698 549 507 468 500 0 Q1/FY13 Q2/FY13 Q3/FY13 Q4/FY13 Q1/FY14 Q2/FY14 Q3/FY14 Q4/FY14 Q1/FY15 Q2/FY15 Oct 14 Nov 14 37 Bajaj Auto Investor Meet KTM – FASTEST GROWING SPORTS BRAND % Growth (Apr-Nov YoY) Motorcycle Industry 7% Royal Enfield 70% KTM 71% Harley Davidson 148% 38 Bajaj Auto Investor Meet MARKET SHARE : BY VOLUME Yamaha R15 MS% Honda CBR MS% KTM MS% 70% 57% 60% 56% 56% 57% 54% 54% 51% 51% 48% 50% 46% 44% 40% 37% 38% 38% 37% 34% 33% 38% 30% 31% 30% 27% 27% 28% 27% 25% 22% 27% 18% 20% 16% 16% 13% 14% 14% 12% 11% 12% 10% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Oct-14 Nov'14 (12-13) (12-13) (12-13) (12-13) (13-14) (13-14) (13-14) (13-14) (14-15) (14-15) 39 Bajaj Auto Investor Meet KTM V/S PREMIUM MOTORCYCLE BRANDS Premium Brands Market Share KTM 75% Harley Davidson 18% Triumph 3% Others 5% Total 100% 40 Bajaj Auto Investor Meet KTM NETWORK 160 150 140 120 105 150 3S Facilities 100 80 71 128 Dealers 63 60 51 112 Towns 40 33 20 0 Jan'12 Jul'12 Jan'13 Jul'13 Jan'14 Sept'14Oct’14 41 Bajaj Auto Investor Meet REPRESENTATIVE KTM DEALERSHIPS 42 Bajaj Auto Investor Meet PAN INDIA PRESENCE 43 Bajaj Auto Investor Meet KTM TRACK DAYS Authentic Race Track Experience for Core customers - Nos. Done: 3 44 Bajaj Auto Investor Meet KTM ORANGE DAYS Motorsports Experience for Amateurs Nos. Done: 30 45 Bajaj Auto Investor Meet ORANGE TOURS Overnight Touring & Camping Experience for the ‘Non-Racer’ Customer Nos. Done: 11 46 Bajaj Auto Investor Meet SUMMARY Market Share: No.1 Volume Growth: No.1 Sports Motorcycle Brand Dealer Network: No. 1 Brand Engagement: No.1 20% Revenue Growth for top 20% of BAL Dealers 47 Bajaj Auto Investor Meet Motorcycle Industry Premium 0.1% 750 Units per month 18% Sports 1.7 Lacs Units per month 82% Mileage 7.6 Lacs Units per month Total Motorcycle Industry – 9.3 Lacs units per month * As of April’14-November’14 48 Bajaj Auto Investor Meet Motorcycle Industry • Rs. 2.5 Lac + Premium • Multi Cylinders 0.1% 750 Units per month • Premium Features 18% Sports 82% Mileage 49 Bajaj Auto Investor Meet Motorcycle Industry • Rs. 2.5 Lac + Premium • Multi Cylinders 0.1% 750 Units per month • Premium Features Harley-Davidson 18% Sports Kawasaki 82% Mileage Triumph 50 Bajaj Auto Investor Meet Motorcycle Industry • Rs. 2.5 Lac + Premium • Multi Cylinders 0.1% 750 Units per month • Premium Features BAL Market Share Principal Competition 18% Sports Kawasaki – 18% Harley Davidson-62% 82% Mileage 51 Bajaj Auto Investor Meet Motorcycle Industry Premium 0.1% 0.1% S3 1000 Units per month 18% 82% Mileage 52 Bajaj Auto Investor Meet Motorcycle Industry S3 • Rs. 1.75Lac - Rs. 2.5 Lacs Premium • 250 cc – 500 cc 0.1% • Advanced Features 0.1% S3 1000 Units per month 18% 82% Mileage 53 Bajaj Auto Investor Meet Motorcycle Industry S3 • Rs. 1.75Lac - Rs. 2.5 Lacs Premium • 250 cc – 500 cc 0.1% • Advanced Features KTM 0.1% S3 1000 Units per month 18% Royal Enfield 82% Mileage Honda 54 Bajaj Auto Investor Meet Motorcycle Industry S3 • Rs. 1.75Lac - Rs. 2.5 Lacs Premium • 250 cc – 500 cc 0.1% • Advanced Features 0.1% S3 BAL Market Share Principal Competition 1000 Units per month KTM – 53% Royal Enfield – 32% 18% 82% Mileage 55 Bajaj Auto Investor Meet Motorcycle Industry Premium 0.1% S2 0.1% S3 • Rs. 1Lac - Rs. 1.75Lacs • 150cc-500cc 18% 3.4% S2 • Sports/Touring Features 30000 Units per month 82% Mileage 56 Bajaj Auto Investor Meet Motorcycle Industry Premium 0.1% S2 0.1% S3 • Rs. 1Lac - Rs. 1.75Lacs • 150cc-500cc KTM 18% 3.4% S2 • Sports/Touring Features 30000 Units per month 82% Mileage Yamaha Royal Enfield 57 Bajaj Auto Investor Meet Motorcycle Industry Premium 0.1% S2 0.1% S3 • Rs. 1Lac - Rs. 1.75Lacs • 150cc-500cc 18% 3.4% S2 • Sports/Touring Features 30000 Units per month BAL Market Share Principal Competition KTM – 4% Royal Enfield – 84% Yamaha – 10% 82% Mileage 58 Bajaj Auto Investor Meet Motorcycle Industry Premium 0.1% S1 0.1% • Rs. 60,000 – Rs.1 Lac S3 • 150cc-225cc 18% 3.4% S2 • Entry Sports Motorcycle S1 14.5% 1.35 lacs units per month 82% Mileage 59 Bajaj Auto Investor Meet Motorcycle Industry Premium 0.1% S1 0.1% • Rs. 60,000 – Rs.1 Lac S3 • 150cc-225cc Bajaj Pulsar 18% 3.4% S2 • Entry Sports Motorcycle S1 14.5% 1.35 lacs units per month Yamaha 82% Mileage Honda 60 Bajaj Auto Investor Meet Motorcycle Industry Premium 0.1% S1 0.1% • Rs.
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