Hero Motocorp Limited · NSE:HEROMOTOCO
Hero Motocorp — Investor Presentation (August 2024)
40 slides from Hero Motocorp's investor presentation, Aug 19, 2024
Slide 1: Exchange filing cover letter
August 19, 2024 Asst. Vice President, Listing Deptt., The Secretary, National Stock Exchange of India Ltd. BSE Limited Exchange Plaza, Plot C-1, Block G, 25th Floor, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (E), Dalal Street, Mumbai - 400 051 Mumbai - 400 001 Scrip Code: HEROMOTOCO Sc
Slide 2: Changing gears: India, Auto, Hero
Changing gears India Auto Hero August 2024 Be the Future of Mobility Create | Collaborate | Inspire
Slide 3: Safe Harbor
Safe Harbor Plan The views expressed here may contain information derived from publicly available sources that have not been independently verified by Hero MotoCorp Limited. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, the accuracy, completen
Slide 4: India is Changing Gears: low inflation, high economic growth
India is Changing Gears: low inflation, high economic growth India is growing as a high-growth With carry-forward of momentum in economic and low-inflation economy growth Source: Economic Survey 2023-24 Be the Future of Mobility Create | Collaborate | Inspire 3
Slide 5: India's aspirations are driving premiumization
India’s aspirations are driving premiumization Be the Future of Mobility Create | Collaborate | Inspire 4
Slide 6: Digital India: surging ahead of other developed countries
Digital India: surging ahead of other developed countries Government on rapid phase of Largest Instant Transfer in Post e-comm boom- Quick 900Mn Internet Subscribers; digitization 674 Cr+ Digilocker; the world: UPI surpassed commerce is now rewriting the BharatNet had laid 6.83LKm 9 Cr Fastags; and
Slide 7: Be the Future of Mobility
Be the Future of Mobility Create | Collaborate | Inspire 6
Slide 8: Rising government capex to lead to higher income and spends
Rising government capex to lead to higher income and spends Economic Survey 2023-24 Be the Future of Mobility Create | Collaborate | Inspire 7
Slide 9: Powered by a young population and burgeoning middle class
Powered by a young population and burgeoning middle class Home to world’s largest young population Be the Future of Mobility Create | Collaborate | Inspire 8
Slide 10: India to become the 3rd Largest economy
India to become the 3rd Largest economy Driving to become the 3rd GDP Ranking in Nominal $ terms largest economy by FY27 Rank CY'27 GDP($tr) 1 US US US US US US US US $31.5tr 2 JP JP CH CH CH CH CH CH $23.6tn 3 GR GR JP JP JP GR GR IN $5.4tn 4 UK UK GR GR GR JP IN GR $5.3tn 5 FR CH FR UK UK IN JP JP
Slide 11: Mission: India@100
D os fa fa e MISSION = — 1947 To 2047 1947 TO 2047 —— India®100: A Land of Abundance, Opportunity, Spirituality, and Technology with Happy Citizens citi
Slide 12: Auto Sector is changing gears as well
Auto Sector is changing gears as well Changing Services as Rise of new segments Digital acting as a customer revenue streams catalyst for value expectations creation Increased focused Mobility services Electrification and Digital on tech, design & • Bike taxi Premiumization transformation as perform
Slide 13: Low 2W Household Penetration indicates untapped opportunity
Low 2W Household Penetration indicates untapped opportunity Be the Future of Mobility Create | Collaborate | Inspire 12
Slide 14: Premium to be 35%+ of total 2W by value by FY30
Driven by ≥200cc, Premium to be 35%+ of total 2W by value (by FY30) Be the Future of Mobility Create | Collaborate | Inspire 13
Slide 15: Hero is changing gears too, with Speed, Scale, Synergy and Simplification
Hero is changing gears too, with Speed, Scale, Synergy and Simplification 14
Slide 16: Hero at a glance
2 R&D Centers 118Mn Customers 10 Power Brands 40+ Years of Trust 1. Jaipur, India 2. Munich, Germany 8 Factories #1 Two-Wheeler manufacturer in the world 50 9,000+ Countries Customer touch points Be the Future of Mobility Create | Collaborate | Inspire 15
Slide 17: Rapid Portfolio Expansion
Rapid Portfolio Expansion Till FY 18 FY 19 – FY 23 Last 12 months < 125cc > 150cc < 125cc > 200cc Scooter EV Scooter New launches planned in 110 VIDA FY 2025 Be the Future of Mobility Create | Collaborate | Inspire 16
Slide 18: Powered by first in class, best in class features
Powered by first in class, best in class features Xtreme 125 Karizma XMR Mavrick HD-X440 Be the Future of Mobility Create | Collaborate | Inspire 17
Slide 19: Along with path breaking Innovation
Along with path breaking Innovation Lynx Acro 2.5R XTunt Be the Future of Mobility Create | Collaborate | Inspire 18
Slide 20: Driving growth through Collaboration
Driving growth through Collaboration - First 440 CC launched in - Partnership for Charging Points - Hero MotoCorp to build and collaboration with HD. - Charging Tech co-developed market Zero Motorcycles’ EV models in India Be the Future of Mobility Create | Collaborate | Inspire 19
Slide 21: EV: A marathon, not a sprint
EV: A marathon, not a sprint; as we accelerate our journey Network Expansion 116 cities; 180 dealers Total touchpoints-203 India’s Largest Network - 2W Charging stations 2.5K (4.5k+) across 200 cities T15 cities contributing to 30% of EV Charging Points (with volume;Vida Market share 6.8 % (June Ath
Slide 22: Entry in Brazil and South East Asia
Entry in the biggest global markets: Brazil and South East Asia - Brazil operations to start in Q4 FY’25 - Dispatch started to Philippines in Mar’24 || Launched: Aug’24 Be the Future of Mobility Create | Collaborate | Inspire 21
Slide 23: Elevating retail experience, Hero 2.0
Elevating retail experience, Hero 2.0: upgrading current stores Configurator FY 25 target 800 dealerships Merch Wall Current 500 dealerships Large Screen FY 23 exit 20 dealerships Be the Future of Mobility Create | Collaborate | Inspire 22
Slide 24: And through new set of Premia Stores
And through new set of Premia Stores Customer Lounge 2025 target 150 dealerships Service Bay Current 42 dealerships Showroom delivery Be the Future of Mobility Create | Collaborate | Inspire 23
Slide 25: Scaling global heights through our R&D Centers
Scaling global heights through our R&D Centers Engineers across 5 yr spend on R&D 1,000+ 1,000 Patents filed Rs 3,500 Cr both centers Hero TCG CIT Jaipur Be the Future of Mobility Create | Collaborate | Inspire 24
Slide 26: Podium: No#2 @ Dakar Rally
Podium: No#2 @ Dakar Rally • The Only Indian Manufacturer to ever make it to the coveted podium of the World’s Toughest Rally 25
Slide 27: From Doing Digital to Being Digital across the Value Chain
From ‘Doing Digital to Being Digital’ across the Value Chain Customer Ex Supply Chain • 360 Deg Customer Data Platform • Price Change Request (PCR) • Differentiated launches • EMF - Just in time Procurement • Personalized contextual journeys • Product 360 • Campaigns powered by Data & AI Manufacturi
Slide 28: Redefining the customer experience: #1 Auto OEM App
Redefining the customer experience: #1 Auto OEM App Personalized Test ride Unique contextual journeys booking experiences Data Driven Marketing Hyperlocal & Explore 360 Digitally enabled by CDP AI driven Campaigns Our configurator Marketing data workbench to First one in Auto 2W to use target existi
Slide 29: Redefining the channel partner experiences
Redefining the channel partner experiences Dealer Sales Executive App – AI First Auto OEM to be in ONDC Service App 2.0 enabled responses Redefining Service experience Real time vehicle Automated Technician tracking assignment Paperless Job Card Digital service order invoicing and payment Be the Fut
Slide 30: Digi Fin: Finance Aggregator Platform
Digi Fin: Finance Aggregator Platform All Financiers in one page Authentication Enter Details View Offer Apply Loan Get Sanction Simple process of application ~965 Dealers live; <3 mins Loan sanction Be the Future of Mobility Create | Collaborate | Inspire 29
Slide 31: Redefining ways of working
Hero Wisdom Sphere Redefining ways of working AI based knowledge tool for R&D engineers Industry 4.0 - Real time Insights enabling Better Decision-Making • Accelerated Product Development: Enable faster, more informed decision-making during the design phase, reducing time-to-market. • Knowledge Pres
Slide 32: Guided by an experienced Board of Directors
Guided by an experienced Board of Directors Be the Future of Mobility Create | Collaborate | Inspire 31
Slide 33: Led by a capable, diverse team
Led by a capable, diverse team from within, best in the industry Leadership team comes from various sectors: FMCG, White goods, Technology, Telecom, Pharma From MNCs, Indian businesses and with both domestic and international experience Be the Future of Mobility Create | Collaborate | Inspire 32
Slide 34: We delivered a record FY24
We delivered a record FY 24 UP 11 % y/y UP 220 Bps UP 36 % y/y Up 40% FY’ 24 PAT: Rs 3,968 Dividend per Revenue: Rs EBITDA 37,456 crores MARGINS 14% crores share: Rs 140 ROE UP FROM ROCE UP Rs 18,000 CR 17.9% TO FROM 22.5% Reserve & 22.9% TO 28.4% Surplus Be the Future of Mobility Create | Collabora
Slide 35: Followed by a strong Q1
Followed by a strong Q1: Crossed Rs 10,000Cr/ Qtr revenue UP 16% y/y UP 60 Bps y/y UP 36 % y/y (PY Rs 163/ share) Q1 Revenue: Rs EBITDA MARGIN PAT: Rs 1,123 EPS: Rs 222 10,144 crores 14.4% % crores /share ● Entry segment market share recovered to 58% (Q2 FY ‘24: 49% ); Deluxe 100/110 continue at str
Slide 36: Focussed on our sustainability targets
While we continue to be focussed on our sustainability targets Be the Future of Mobility Create | Collaborate | Inspire 35
Slide 37: A clear strategic path to 2030
We have a clear strategic path to 2030 Growth Pillars Operating Pillars Grow the Core Future Fit Org Diversify ESG Expand the Be Financially Win in Premium Build EV Drive growth category Revenue Fit, People Fit, Leadership responsibly through market Streams Process Fit, and development Culture Fit *
Slide 38: 4S Key Mantra: Speed, Scale, Simplification & Synergy
With 4S Key Mantra: Speed, Scale, Simplification & Synergy Decision Making , Time to market, Speed Faster response time, Agile and Responsive Org, Digitization and Automation Big Bets, Scalable solutions, Scale Platform Approach Eliminate Redundancies and Simplification Unnecessary Complexity , Empo
Slide 39: In summary
In summary • India marching ahead- on road to 3rd largest economy soon and Viksit Bharat by 2027 • Aspirations combined with affordability and untapped penetration presents huge growth potential for two-wheeler industry across both mass and premium segment • Hero changing gears on all fronts- portfo
Slide 40: Thank you
Thank you Be the Future of Mobility Create | Collaborate | Inspire