IR meeting May ’2013 - TVS Motor Company Official ... · PDF fileIR meeting – May...
Transcript of IR meeting May ’2013 - TVS Motor Company Official ... · PDF fileIR meeting – May...
Slide no. 1 IR meeting – May ’2013
Slide no. 2 IR meeting – May ’2013
Global Two Wheeler Penetration and GDP Per Capita SOURCE: Credit Suisse Aug 2012
With hardly 7% penetration, Indian Two Wheeler Industry is sitting on the
launch pad of an exponential growth phase
Slide no. 3 IR meeting – May ’2013
India is the second largest two-wheeler market in the world with sales of ~13.43 mn units in domestic market in FY12
However, penetration levels still very low
compared to other countries such as
China, Indonesia etc.
Rising per capita income to enhance affordability, and demand for two-wheelers
Lack of public transport
Emergence of a large young working population
Low penetration rate despite India being 2nd largest marketa
Increasing per-capita income
Source: IMF, World Bank
Source: IMF
India
China
Indonesia
Malaysia
Thailand
Brazil
Vietnam
Taiwan
0
100
200
300
400
500
600
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000
2Ws Per 1000
GDP PPP(USD)
Increasing Per Capita Income and low penetration level signals the entry
of India into a prolonged growth phase
Slide no. 4 IR meeting – May ’2013
1961
Auto Components
Manufacturing
1900 1920 1950 1960 1980 2000 2010
1911 Launch of Bus Service
1929 General Motors Dealership
Launch of Logistic Network
1978 Two Wheeler
Manufacturing
1986
Entry into Electronics
Manufacturing
Mid 2000s Established Overseas Plants,
China, UK and Indonesia
Early 2000s Deming Prize
1990
Entry into Financial
Services
Established in 1911, TVS Group today is a US$ 7 Bn diversified
conglomerate with interests across Automotive, Manufacturing, Logistics
and Electronics
TVS Group – Our Journey
Slide no. 5 IR meeting – May ’2013
TVSM – poised for Quality growth
Slide no. 6 IR meeting – May ’2013
1998 Established
Manufacturing Plant
in Mysore
1980 1985 1990 2000 2003 2009 2012
1980 Started Manufacture of
Moped
1982 JV with Suzuki Motor
Corporation (SMC)
1994 Launch of India’s first
variomatic sub-100cc
scooter
2001 Emergence as
TVS Motor
Company after
exit of SMC
2006 Himachal
Pradesh Plant
established
2006
1984 First player to
introduce 100 cc
Motorbike in India
2002 Indonesian Subsidiary
formed;
Deming Award
2008 Commercial Production
of 3-Wheeler started
2010 New 110cc
Scooter WeGo
launched
2011 India’s first ABS fitted
180cc motorbike
launched
TVS Motor – Shaping Indian Two Wheeler Industry since 1980
2012 Phoenix, India’s
first Premium
125cc motorbike
launched
Slide no. 7 IR meeting – May ’2013
Company overview
One of the largest two and three wheeler companies
A state of the art manufacturing plants located in Karnataka, Tamil Nadu,
Himachal Pradesh and Indonesia
Capacity as at March 2013 - 30 Lakhs two wheelers
Strong World class in-house R & D
Robust supplier base
Extensive all India sales & service network
Rapid growth in exports
Total Revenue (2012-13) : Rs. 7089 Cr.
Slide no. 8 IR meeting – May ’2013
300
800
1300
1800
2300
2009-10 2010-11 2011-12 2012-13
638832 844 756
310
467 525
446
572
705778
793
Motorcycles Scooters Mopeds
(nos. in 000’s )
1520
2004
Strong presence in all 3 segments of Two Wheelers
2147 1995
Slide no. 9 IR meeting – May ’2013
TVSM 2W Export Sales
225
270
211
0
75
150
225
300
2010-11 2011-12 2012-13
No
s '0
00
s
Slide no. 10 IR meeting – May ’2013
TVSM 3W Sales
39 40
49
0
12
24
36
48
60
2010-11 2011-12 2012-13
No
s '0
00
s
Slide no. 11 IR meeting – May ’2013
A complete portfolio with product at every price point
XL Super
20000
25000
30000
35000
40000
45000
50000
65000
MOPEDS UNGEARED SCOOTERS
MOTORCYCLES
Ex-
Show
room
price
-Bangalo
re (
May-
13)
Phoenix
Apache RTR 160
StaR Sport
Scooty Pep
Streak
Wego
XL Heavy duty
StaR City
Offering a Comprehensive Product Range
70000
Slide no. 12 IR meeting – May ’2013
Apache
• Unleashing the Racing DNA to build the Ultimate Roadster. TVS Apache derives heavily from the Racing platform, building the thrill of racing into the performance biking segment. With over 10 Product of the Year and Design of the Year awards, TVS Apache is one of the most recognized Performance Bikes in the country
Phoenix 125
• Introducing premium features including Fully Digital Speedometer, Hazard lights and world class suspension into the executive segment, Phoenix has already won awards including Bike of the Year upto 125cc – NDTV and developed significant traction within 3 months of launch
StaR City
• Combining durability and best-in-class mileage with executive segment features such as dual tone body colours and an stylish headlamp, TVS StaR City offers a unique proposition of compromise-breaking performance for the customer.
Sport
• With style as the anchor and by setting a benchmark in terms of mileage, Sport has carved out a niche for itself, combining economy and self-expression for the discerning young customer.
Motorcycles – Premium, Executive, Economy
Slide no. 13 IR meeting – May ’2013
Scooty Streak
• The young independent working woman inspired the new "TVS Streak". The all black Streak was to celebrate the coming of age of the Indian working woman and her ability to excel in all walks of life.
WEGO
• Wego is a family-friendly scooter loaded with differentiating features including 12" alloy wheels, telescopic suspension and nitrogen gas charged rear suspension. This sleek metal bodied scooter strikes a perfect balance between stability and maneuverability, power and mileage, making it a delight to ride for all category of users.
Scooty Pep+
• The Iconic Scooty brand which pioneered the Ungeared Scooter revolution in India, continues to play a dominant role in the female segment of the scooter category. Available in an incredible range of 99 colors, Scooty primarily addresses the mobility needs of Student Girls.
TVS XL HD
• TVS Mopeds revolutionized mobility in the early 80s empowering a segment of India that was hitherto unserved. These models empower the entry level Two Wheeler user to enhance his efficiency and drive economic prosperity.
Scooters, Mopeds
Slide no. 14 IR meeting – May ’2013
Three Wheelers – The stylish TVS KING
TVS entered the 3W market towards the end of FY08, with TVS-King
TVS-King engineered with ‘best in class’ features.
Annual Sales of 49k for 2012-13.
Building significant traction in international markets
Slide no. 15 IR meeting – May ’2013
• World class facility employing over 500 engineers
• Partnership with leading international research institutes
• World Class products setting the benchmark in their category
R&D Spends 2008-09 2009-10 2010-11 2011-12 2012-13
Rs Mn 777 836 999 1204 1239
% of Sales 2.1 1.9 1.6 1.7 1.8
Strong Research & Development – Infrastructure and Intellectual Property
Slide no. 16 IR meeting – May ’2013
Number of Dealers 845
January ’ 2013
One of the widest distribution networks in Two Wheeler industry
TVSM has a robust two tier distribution network with 845 exclusive dealers supplemented by more than 2500 sales & service points
600
700
800
900
Main Dealers
2009-10 2010-11 2011-12 2012-13
Slide no. 17 IR meeting – May ’2013
6324
7163 7089
3000
4100
5200
6300
7400
2010-11 2011-12 2012-13
Rs
Cr
Total Revenue
248
316
255
0
85
170
255
340
2010-11 2011-12 2012-13
Rs
Cr
Profit Before Tax
TVSM Performance
PBT for 2012-13 is before exceptional item of Rs 91.63 cr debit and
extraordinary items of Rs 0.79 cr credit
Slide no. 18 IR meeting – May ’2013
TVS Motor’s Standalone performance 2012-13 Rs Cr
Slide no. 19 IR meeting – May ’2013
TVSM Borrowings (Standalone)
Slide no. 20 IR meeting – May ’2013
Summary
Long term growth prospects are attractive
TVSM poised to grow
Strong innovation and faster upgrades
Strong brands that resonate with their customers
Exports will be a significant growth engine
Entry into three wheeler has enhanced product portfolio
Significantly improved/ superior product quality New products across segments, will strengthen TVS’ presence and lead to market
share gains
Improved product mix likely to increase realizations and profitability
Focused efforts to reduce cost will improve profitability Strong free-cash flow expected
Slide no. 21 IR meeting – May ’2013
TVS Group - Awards & Recognition
Deming Quality Award
Sundaram Clayton
Brakes India
TVS Motor Company
Sundaram Brake Linings
Lucas-TVS
Japan Quality Medal
Sundaram Clayton
TPM Excellence awards
Sundram Fasteners
Brakes India
TVS Motor Company
Sundaram Auto Components Ltd
Slide no. 22 IR meeting – May ’2013
No part of this presentation is to be circulated, quoted, or reproduced for any distribution without prior written approval from TVS Motor Company Limited, PB 4, Harita, Hosur-635109, Tamilnadu, India. Certain parts of this presentation describing estimates and future plans may be “forward looking statements” within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied. This material is not a complete record of the discussion.
Thank you