INVESTOR PRESENTATION May - 2018
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 1 OUR JOURNEY SO FAR
Divested from End other business Collabor to focus on ation tractors and Compact & NETS Launch of Manufacturing of Launch Farmtrac with JCB Escorts Credit Construction construction Product Portfolio Platform under Escorts Tractors End JV with Ford equipment Partner with DLL equipment revamping Farmtrac & for Financing Electric Tractor Concept 1961 1969 1971 1979 1995 1998 2003 2005 2010 2013 2015 2016 2017 2018 Distribution Launch Powertrac Launch DIGMAX Launch ALT Auto part JV with Ford motors Collaboration with Agreement Brand of tractors Brand of Backhoe By Powertrac Business to makeTractors JCB For backhoe Divested with Doosan Infracore Co. Limited
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 3 PROUD PARTNER IN NATIONAL DEVELOPMENT
Bringing World’s Best to India and Many firsts offering India’s Best to the World
More than 60 year >1 million of collaboration satisfied customers with Indian Railways
Dominant Player 1st to bring in Crane Segment Backhoe Loader in India May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 4 OUR CURRENT BUSINESSES
Revenue FY17: Rs. 3,346 Cr. Escorts Agri Machinery FY18: Rs. 3,958 Cr.
Revenue FY17: Rs. 607 Cr. Escorts Construction Equipment FY18: Rs. 780 Cr.
Revenue FY17: Rs. 243 Cr. Railway Equipment Division FY18: Rs. 287 Cr.
Revenue FY17: Rs. 4,219 Cr. FY18: Rs. 5,016 Cr.
May - 18 Copyright @ Escorts Ltd. 5 ESCORTS LIMITED 5 MANUFACTURING FACILITIES
Escorts Agri Machinery (EAM) Three Plants: Farmtrac, Powertrac & Components with a production capacity of 100,000 tractor p.a. Poland Plant: 100% subsidiary having an installed capacity of 2,500 tractor p.a.
Escorts Construction Equipment (ECE) State of the art manufacturing and assembly facility sprawling 23,226 sq.m. of space with a capacity of 10,000 units p.a.
Railway Equipment Division (RED) State of the art manufacturing facility sprawling 14,000 sq.m. Couplers (AARH + Shaku )1100 p.a., Air Brake 4400 p.a., EP Brake 200 p.a., Brake Block: 32,000 p.a.
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 6 SCORTS AGRI MACHINERY (EAM)
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 7 TRACTOR SOWING FOR BUMPER HARVEST
India Holds the 2nd Largest Improve Retail Finance Agricultural Land in The World
Rural Focussed Budget Bumper Food Grain Production
Government Focus to Double the Agri- 2 Years of on-time Normal Monsoon Income of Farmers By 2022
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 8 AGRICULTURE CONTRIBUTION & LEVEL OF MECHANIZATION
RUSSIA 1 percent WESTERN EUROPE 4 percent 95 percent 5 percent 80 percent UNITED STATES 95 percent
CHINA 10 percent 48 percent
BRAZIL SHARE OF AGRICULTURE IN GDP 5 percent INDIA LEVEL OF FARM MECHANISATION 75 percent 14 percent 40 percent
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 9 ..INDIAN TRACTOR INDUSTRY
55% Indians depend on agriculture.
Still only 40% mechanization in India.
More than 6 Lacs tractor sold every year.
Compound annual growth rate of 10% in last 14 years
Customer exchange their tractor in every 4-6 years.
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 10 ↑ DOMESTIC TRACTOR INDUSTRY
Increasing Trend towards 7,09,980 Mechanisation
5,80,982 Minimum Support Prices for Key Crops
Scarcity of Labour 1,76,404
Ease of Credit Availability from Govt. FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
❖ India is the largest manufacturer of farm equipment ❖ India accounts for nearly 1/3rd of the overall tractor production globally ❖ 0.6 million units in FY17 and reach to approx. 1.2-1.5 million units by 2030
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 11 INDUSTRY SEGMENTATION
Industry Segment Volume 3,34,797 2,84,243 2,54,460 2,55,737 2,26,825 2,02,341 2,01,508 1,80,322
67,606 59,832 53,100 54,092 53,117 32,750 32,572 41,139
< 30 HP 31-40 HP 41-50 HP > 50 HP
FY15 FY16 FY17 FY18
Industry Segment Market Share in % 48.9% 46.4% 46.0% 47.2%
36.7% 36.6% 34.7% 35.8%
10.9% 10.8% 9.3% 9.5% 5.9% 6.6% 7.1% 7.5%
< 30 HP 31-40 HP 41-50 HP > 50 HP
FY15 FY16 FY17 FY18
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 12 HOW WE ARE POSITIONED
Premium Economic
High (> 50 HP) FARMTRAC (41-50 HP) Mkt.Size:52%
Medium (31-40 HP) POWERTRAC Mkt. Size:37%
Compact Tractor Low (< 30 HP) Mkt. Size:11% SteelTrac
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 13 DOMESTIC (TRACTORS) VOLUME
22% (APPROX.)
FY(16-17) FY(17-18)
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 14 WINNING MARKET
Current 850+ Active Dealer Network
1 Strong Market, Strong Brand
2 Strong Market, Weak Brand
POWERTRAC FARMTRAC 3 Opportunity Market OPPORTUNITY MARKET
LOW TIV
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 15 DOMESTIC FY’22 OUTLOOK
TRACTORS 15~16%
~11% FY18 FY19 FY20 FY21 FY22 TIME (YRS) May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 16 INGREDIENTS FOR GROWTH
Dual Distribution South/West Focus Strong Brand Coverage: 90 99% Channel Coverage: 55 80% Weak Brand Coverage: 33 80% Compact tractor Rice tractor
Product Portfolio Escorts Credit Farmtrac: 52% 95% 6% Penetration 40% Powertrac: 74% 90% Steeltrac: 25% 75%
Customer Centricity 48-Hours Parts Care Button Scientific Sales Management TRAXI ETC Mol Anmol
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 17 EXPORTS (TRACTORS) VOLUME
2x
FY(16-17) FY(17-18)
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 18 EXPORT FY’22 OUTLOOK
TRACTORS ~8k-10k
~2k FY18 FY19 FY20 FY21 FY22 TIME (YRS) May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 19 FOCUS MARKETS
EUROPE US MARKETS SAARC
LATAM AFRICA
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 20 SPARE PARTS & LUBES
+20% (APPROX.)
FY(16-17) FY(17-18)
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 21 OUTLOOK FY’22
SPARES REVENUE
9-11%
~8 %
TRACTOR REVENUE FY(17-18) FY(21-22)
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 22 ENGINES
~4000 UNITS ENGINE SALES FY (17-18)
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 23 ENGINES FY’22 OUTLOOK
REVENUE ~4x GROWTH
FY (17-18) FY (21-22) TIME (YRS) May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 24 TRACTOR IS AS GOOD AS ITS ATTACHMENTS
~2500 Cr Industry
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 25 SHIP* BUSINESS
TECHNOLOGY PRODUCT RANGE SUPPLY CHAIN DISTRIBUTION NETWORK
SPRAYERS 10x
HARVESTERS REVENUE ESCORTS PLANTERS SHIP x
IMPLEMENTS FY (17-18) FY (21-22)
TIME (YRS)
May - 18 *SHIP = Sprayers, Harvesters, Implements & Planters Business Copyright @ Escorts Ltd. ESCORTS LIMITED 26 NEW PRODUCTS (FY 20162018) – DOMESTIC MARKET COMPACT SEGMENT SUB UTILITY SEGMENT UTILITY SEGMENT
Classic Series
35 to 45 HP FARMTRAC Classic Series FT 6080 PRO 45 to 55 HP Compact Series - F20 Technology 22 & 26 HP - T20 Technology EURO 55
PT 434 PLUS PT 439 PLUS
EURO 60 POWERTRAC STEELTRAC PT 425 N (PS, OIB) EURO 75 EURO 41 PLUS EURO 45 PLUS 4WD 12 HP 12 HP to 80 HP PRODUCTS RANGE 80HP May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 27 NEW PRODUCTS (FY 2016 TO 2018) – EXPORT MARKET Compact Segment Sub Utility Segment Utility Segment
FT 6045 FT 6075 PRO EURO 60/75 4WD
FT 6080 PRO FT 6090 PRO FT 6050 C
22 HP 25 HP 26 HP 30 HP Mechanical & HST FT 6090 X PRO FT 6090 X PRO CAB 22 HP 22 HP to 90 HP PRODUCTS RANGE 90HP
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 28 BRAND LED PRODUCT INNOVATION
<30 HP 31-40 HP 41-50 HP > 50 HP
FARMTRAC Prestigious & Powerful & strong Brand Legacy
Atom Series FarmTrac XP FarmTrac Classic FarmTrac Executive
POWERTRAC Efficient & Superior In-House Engineering
Steeltrac PowerTrac DS+ PowerTrac Euro PowerTrac Euro
Products introduced in the last 3 years POWERTRAC-ALT contribute ~75 % of total volumes in 9MFY18 PowerTrac ALT 3500 PowerTrac ALT 4000
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 29 EAM JOURNEY SO FAR…
Escorts Segment Market Share in % 14.3% 14.5% 12.8% 12.6% 11.7% 9.7% 10.9% 10.4% 9.7% 7.9% 6.1% 6.9% 3.5% 1.0% 1.9% 2.1%
< 30 HP 31-40 HP 41-50 HP > 50 HP FY15 FY16 FY17 FY18
Products <30 HP 31-40 HP 41-50 HP 51 - 60 HP > 60 HP XP Series FARMTRAC Atom Series XP Series Classic Series Executive Series Executive Series (6060) (6065) T20 & F20 Euro Series Euro Series SteelTrac (12 HP) POWERTRAC DS Plus Series DS Plus Series EURO Series DS Series ALT Series ALT Expansion
▪ Gaining market share in >50 HP segment in the last 2 to 3 years. ▪ To separate the channel in FT and PT. To increase market share in key states in south and west region.
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 30 …EAM JOURNEY SO FAR & WAY FORWARD
SEGMENT REVENUE (Cr) EBIT % Way Forward To Achieve 4,500 13.6% 16.0% 4,000 13~15% EBIT Margin 14.0%
3,500 10.3% 12.0%
3,000 9.7% 8.2% 10.0% At Constant volume 2,500 7.8% 7.2% 8.0% 2,000 3,958 6.0%
1,500 3,416 2,912 3,204 3,346 2,734 4.0%
1,000
2.0% 500
- 0.0% SY12 FY12-14** FY15 FY16 FY17 FY18 ❖ Revenue Growth Initiatives ❖ VOLUMES (Nos.) ROCE % EXPORT ❖ South & West penetration 90,000 46.34% 50.00%
45.00% 80,000 ❖ 40.00% Emerging Business
70,000 35.70%
32.00% 35.00%
60,000
24.90% 30.00% ❖ Cost Rationalization 50,000
21.40% 21.70% 25.00%
40,000 80,417 20.00% ❖ Raw Material
30,000 68,963
63,786 15.00% 60,673 59,779 51,455 20,000 10.00% ❖ Manpower cost
10,000 5.00%
0 0.00% SY12 FY12-14** FY15 FY16 FY17 FY18 May - 18 Copyright @ Escorts Ltd. ** Annualised Data ESCORTS LIMITED 31 TRACTORS SOLUTIONS
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 32 SCORTS CONSTRUCTION EQUIPMENT (ECE)
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 33 CONSTRUCTION EQUIPMENT SEGMENTS
Material INDUSTRY 2017 Handling & Cranes 6 % 7.9
Material 10 processing
Earth 14 62.1 Construction Moving Equipment Equipment
Concrete Equipment Earth Moving Concrete Equipment Material Handling including Forklift Road Road Construction Building Equipment Material Processing
ECE present in 40 % Revenue Potential of the Construction Equipment Industry – Strategic Partnership and Distribution Agreement make it to 80% in Value Terms May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 34 SEGMENTS APPLICATION & USERS
Segment Major equipment types Application Segment User • Mining Small/ Individual 70% A - Backhoe loader, • Roads Earthmoving B - Excavator, 20% • Real Estate/Land Development Medium fleet owners 1 Equipment C - Wheeled loader • Power 10% • Railways/Metros Institutional/corporate
• Erection work in projects Government 5% • Power Material Handling & Institutional/corporate 20% 2 Pick and Carry cranes • Steel Cranes • Mining Medium fleet 20% • Railway/metros Small / Individual 55%
• Highways Rental hirers 7% • Rural roads Road building Contractors 76% Compactors, pavers, asphalt finishers • Airports 3 equipment • Land Reclamation Corporate Buyers 3% • Motor Graders Govt Bodies 14% • Irrigation Canals • Road construction 4 Concrete equipment Mixers, pumps, batching plants • Building construction • Airports • Precast/In situ
• Stone Quarries 5 Material processing Compressors, Crushers • Mining • Over ground blue metal crushing
May - 18 Source: ICEMA, Off-Highway Research, Escorts Data Copyright @ Escorts Ltd. ESCORTS LIMITED 35 PRODUCT PORTFOLIO
1) Material 60% Handling
2) Earth 20% Moving
3) Road 10% Construction % of ECE Revenue 5/22 May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 36 WHAT WE DID IN LAST 3-4 YEARS
New Product Launches • City Crane • Jungli • HYDRA 14EX Plus • F17
Backward integration of Construction Operations with Tractors
Operations Excellence through Total Productive Maintenance
White Collar Manpower Optimization (30% reduction)
Cultural transformation ~Customer Centric, Open Office, training and development
Break even point reduction leading to EBIDTA break even
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 37 MATERIAL HANDLING High Margin
To build the segment and Slew expand Product 10-60T Basket
TRX/Safe Cranes 10 – 23T Continue Market Dominance and move the market Hydra Cranes upwards 10 – 16T
Low Margin
Hydra 68% 60% 60% 68% 67% Product F-15/ TRX Series Split 32% 40% 40% 32% 33% FY14 FY15 FY16 FY17 FY18 Transform the market from a leadership position
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 38 TRANSFORMATIONAL PRODUCTS – ECE
RT 40 POWER BOOM
CT SMART 15 Jungli 4 x 4
New EC 5250 with Water Cooled Engine
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 39 NETWORK
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 40 VOLUMES
+35% (APPROX.)
FY(16-17) FY(17-18)
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 41 FY’22 OUTLOOK
High Single Digit EBIT Margin
3X CONSTRUCTION REVENUE CONSTRUCTION
X FY17 FY18 FY19 FY20 FY21 FY22 TIME (YRS) May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 42 READY TO RIDE THE INDUSTRY BOOM
VOLUMES (Nos.)
5,000 120.00% Way Forward To Achieve
4,500
100.00% 4,000 High Single Digit EBIT
3,500
80.00% 3,000 Margin
2,500 60.00%
2,000 4,486
40.00% 1,500 2,804 3,007 3,315
1,000 2,555
20.00%
500
0 0.00% Strategic Tie ups FY12-14** FY15 FY16 FY17 FY18 Focus on Cost Reduction : SEGMENT REVENUE (Cr) EBIT % Material Cost
900 3.0% 800 2.0% Focus on Export reach 700 607 1.9% 1.0% 600 509 516 497 0.0% Enhancement 500 -2.3% 780 -1.0%
400 -2.0%
300 -4.2% -3.0% Channel Financing 200 -4.9% -5.2% -4.0%
100 -5.0%
- -6.0% Dealership & Outlet reach FY12-14** FY15 FY16 FY17 FY18 expansion
May - 18 Copyright @ Escorts Ltd. ** Annualised Data ESCORTS LIMITED 43 RAILWAY EQUIPMENT DIVISION (RED)
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 44 ESCORTS RAILWAYS: MANUFACTURING SAFETY & COMFORT
To achieve Leadership position in Indian Railways Components Industry in the defined segment
Major Sourcing partner for global Rolling Stock OEMs & Operators
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 45 JOURNEY SO FAR
Bogie mounted Axle Mounted Semi permanent couplers Electro pneumatic brake brake systems for Brake Systems for EMUs (Scharfenberg, for EMUs Composition brake blocks wagons (Indigenous) for LHB Germany) (Knorr Bremse, Germany) (ICER, Spain)
NEW 1962 1966 1968 1969 1978 1997 2012 2013 2015 DEVELOPMENT
Shock absorbers for Direct admission Valves Air brake system (Knorr • AAR H couplers for LHB • Brake Electronics, Locomotive Brake passenger coaches for Vacuum brake Bremse, Germany) coaches (Indigenous) System (In-house) (Rhinemettal (Boge), coaches & wagons • Fire retardant vestibules • Locomotive couplers (Indigenous) Germany) (Knorr Bremse, Germany) for coaches (Indigenous) • Composition brake pads (Federal Mogul, US) • Air Spring (Toyo Tires, Japan) • Brake Disc for LHB Coach • Brake System for Metro/High Speed • Door Systems/PSD ( TC)
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED IRIS CERTIFICATION
June June 2016 2015 Stage-1 Audit passed IRIS Certification Start Dec 2016
International accreditation for Design , Development & Manufacturing in India May 2017
Certification Stage-2 Received Certification Audit Completed Aug 2017
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 47 PROVIDING COST EFFECTIVE SOLUTION TO WORLD RAILWAYS & METROS
Iran Spain Myanmar
Thailand
Taiwan
Malaysia Ivory Coast ▪ Presence across 3 continents India Indonesia ▪ Exporting Railway products to South Ghana Bangladesh Asian, South East Asian, African, Egypt Sri Lanka Australian and European countries Tanzania ▪ Strong Market position in Coaching & EMU Segment ▪ Leading domestic player in Brake, New Zealand Coupler and Suspension Systems
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 48 GLOBAL CUSTOMERS WITH WHOM WE ARE WORKING
Working closely with new global customers for theirs upcoming projects in INDIA
Working closely with new global customers for theirs upcoming projects in INDIA
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 49 ON GROWTH TRACK
YOY EBIT GROWTH CONSISTENT of more than 25 % ORDER BOOK GROWTH from FY15 ₹ 350 Crs. – Mar’18
SEGMENT REVENUE (Cr) EBIT %
350 13.9% 16.0%
14.0%
300 12.7%
✓ Manpower Cost, Productivity Improvements 12.0% 250 9.5% 9.9%
10.0% ✓ Material Cost improvements 200 6.3% 6.0% 8.0% 150 ✓ New Product Revenue boost 287 6.0% 100 228 243 149 171 184 4.0% 50 ✓ Building Strong Inhouse R&D 2.0%
- 0.0% SY12 FY12-14** FY15 FY16 FY17 FY18
May - 18 Copyright @ Escorts Ltd. ** Annualised Data ESCORTS LIMITED 50 Growth momentum to continue
4X
Strategic Tie-up & Inorganic Leveraging Core Strengths X
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 51 GROUP FINANCIALS
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 52 ↑ KEY FINANCIAL METRICES…
REVENUE (Cr) Material Cost VA/VE % to continue further 73.1% 5,016 71.7% 71.5% 3,894 4,194 3,986 4,168 ↓6.6% 3,439 67.9% 67.0% 66.9%
# # # # # SY12 FY12-14 * FY15 FY16# FY17 FY18 FY12 FY12-14 FY15 FY16 FY17 FY18 EBITDA (Cr) % PAT (Cr) %
600 11.1% 12.0% 400 6.9% 8.0%
350 7.0%
500 10.0%
8.0% 300 6.0%
400 8.0% 6.0% 250 3.9% 3.8% 5.0%
300 5.0% 5.0% 6.0% 200 4.0% 4.0% 150 2.4% 3.0% 200 4.0% 1.8% 1.9%
100 2.0%
100 2.0% 182 254 161 177 324 557 50 70 163 75 84 160 345 1.0%
0 0.0% - 0.0% # # SY12 FY12-14* FY15 FY16# FY17 FY18 SY12 FY12-14* FY15 FY16 FY17 FY18 May - 18 # From Continuing Operations Copyright @ Escorts Ltd. * Annualised Data ESCORTS LIMITED 53 ↑ KEY FINANCIAL METRICES… EPS (₹) Including Treasury Shares DEBT EQUITY RATIO
0.40 0.34 1.2
0.35 28.85 1
0.30 0.27
0.24 0.8 0.25 0.19 13.69 13.43 0.20 0.6 0.15 0.13
0.4
5.84 6.26 6.97 0.10
0.2 0.05 0.02
- 0 SY12 FY12-14 * FY15 FY16# FY17 # FY18 # SY12 FY12-14* FY15 FY16 FY17 FY18 ROE % PATROCE (Cr) % 16% 14% 25% 21% 14%
20%
12%
10% 9% 8% 15% 12% 13% 8% 9% 10% 6% 4% 4% 5% 6% 8%
4%
5%
2%
0% 0% SY12 FY12-14* FY15 FY16 FY17 FY18* SY12 FY12-14* FY15 FY16# FY17 # FY18* #
May - 18 # From Continuing Operations Copyright @ Escorts Ltd. * Annualised Data ESCORTS LIMITED 54 ↑ CONSISTENT RATING UPGRADES LBBB- LBBB LBBB+ A- A A+ (₹ Cr)
600 553 120.0
111.0 480 500 100.0 96.0 436
400 290 361 80.0
206 302
300 263 60.0 57.0 22050.0 50
200 40.0 159 28.6 263 31.0 230 100 20.0 178 140 104 50
0 - FY 11-12 FY 12-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18
*Nos. from FY 11-12 to FY 14-15 is as per IGAAP. Term Loan WC Finance Cost External Credit Rating *Finance Cost for FY 12-14 is for 18 months. May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 55 ↑ SHAREHOLDING PATTERN
30.5% 36.7% 35.5% 35.9% 33.0%
20.3% 21.5% 21.1% 27.0% 29.5%
43.0% 43.0% 43.0% 40.0% 40.0%
MAR'17 JUN'17 SEPT'17 DEC'17 MAR'18
Promoters + Trust Institutions* Public
* FPI/Financial Institutions/ Banks/Insurance Companies As of quarter ended
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 56 ↑ CORPORATE GOVERNANCE
Vibrant Board Big 4 as I-Auditor Young leadership Launches update
Monthly Tractor Volume Disclosure Quarterly Earnings Con-calls
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 57 THE WAY FORWARD Market Expansion Focus on Corporate Governance, Brand Development Compliances & Control Developing Emerging Businesses
Leveraging Construction and Railway Business
Developing Earnings Growth & New Products Investor Return Profit & Cash focus; Developing Capital Allocation New Markets
Cost Rationalization May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 58 Vision
By 2022
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 59 Purpose and Vision
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED REVENUE (₹ CR.)
2.5x
FY17 Aspiration 2022
2 x 3x 4 x
FY17 Aspiration 2022 FY17 Aspiration 2022 FY17 Aspiration 2022
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 61 VISION 2022
2.5X Revenue 10% Plus
Margin 13~14% 25% - 30%
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 62 BOARD OF DIRECTORS…
Mr. Rajan Nanda, Chairman and Managing Director ➢ A Visionary leader, who has played a pivotal role in promoting the cause of Indian Agriculture ➢ Active member of several apex trade and industry bodies and member of CII National Council
Mr. Nikhil Nanda, Managing Director ➢ Alumnus of Wharton Business School, Philadelphia ➢ Responsible for driving Escorts’ growth initiatives to strategically position it in the global arena
Dr. Sutanu Behuria, Independent Director ➢ A PHD in Economics from Southern Methodist University, Dallas, He is an IAS officer from 1976 batch. ➢ He has served as secretary in the Dept. Of Fertilisers, National Disaster Management Authority and Dept. of Heavy Industry.
Mr. Hardeep Singh, Director ➢ Chairman -Monitoring committee on minimum support price (Planning Commission) & Food security Task force (CII) ➢ He was the former executive chairman of Cargill South Asia and Amalgamated Plantations Pvt. Ltd
Mr. D J Kakalia., Independent Director ➢ Partner in Mulla & Mulla & Craige, Blunt & Caroe, Advocates, Solicitors & Notaries ➢ Specializes in litigation for the power and manufacturing sector, representing and advising large Power Companies ➢ Director and member of various Board Committees in Aditya Birla Finance Limited, Reliance Broadcast Network Limited and Reliance Power Limited
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 63 …BOARD OF DIRECTORS
Mr. P.H. Ravikumar, Independent Director ➢ Founder MD & CEO of NCDEX ➢ He has worked with leading banks like ICICI Bank and Bank of India
Mrs. Vibha Paul Rishi, Independent Director ➢ An Alumnus of FMS Delhi, She has been an Executive Director of Brand and Human Capital of Max India Limited ➢ She has also worked with leading Industry names like Future Group and PepsiCo in various leadership roles.
Ms. Nitasha Nanda, Whole time Director ➢ An entrepreneur & experienced business leader, She manages the Escorts Securities Ltd. And Escorts Asset Management Ltd. ➢ She is on the board of directors of Seitz technologies, RNIS, Raksha TPA, Rimari India and Sun and Moon travels.
Mr. G. B. Mathur, Director ➢ An ACS and LLB by profession, He has more than 3 decades of experience in corporate law ➢ He has previously worked with Chambal Fertilizers and Chemical Limited
Mr. Ravi Narian, Independent Director ➢ MBA from the Wharton School of the University of Pennsylvania ➢ 34 years plus of experience in various professional capacities to reputed organisations all over India. ➢ Adviser at Advent International Corporation and National Stock Exchange of India (NSE) as Non-Executive Vice-Chairman ➢ He also serves as Vice-Chairman of World Federation of Exchanges.
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 64 SAFE HARBOR
Certain statements in this document include forward-looking comments and information concerning the company’s plans and projections for the future, including estimates and assumptions with respect to economic, political, technological, weather, market acceptance and other factors that impact our businesses and customers. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward- looking statements. Escorts Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.
Contact Details Bharat Madan +91 129 2564837 Escorts Ltd. (Group Chief Financial Officer) [email protected] (CIN: L74899HR1944PLC039088) Corporate Centre 15/5 Mathura Road Faridabad – 121003 Phone: +91 129 2250222 Prateek Singhal +91 129 2564921 www.escortsgroup.com [email protected] (Financial Analyst & Investor Relations) [email protected]
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 65 THE NEW ESCORTS
TOG THER 2022
May - 18 Copyright @ Escorts Ltd. ESCORTS LIMITED 66