Hero Motocorp Limited · NSE:HEROMOTOCO
Hero Motocorp — Investor Presentation (June 2024)
37 slides from Hero Motocorp's investor presentation, June 2024
Slide 1: Hero MotoCorp Ltd. Corporate Overview June 2024
Hero MotoCorp Ltd. Corporate Overview June 2024
Slide 2: The world's largest Motorcycle and Scooter company
The world’s largest Motorcycle and Scooter company 2023 2022 2021 2020 Multiple Premium Launch brand VIDA, launches including 2016 HMCL’s in-house H-D X440 22 years in a row Reached electric brand 2011 cumulative Expanded global production of 100 1983 footprint to 40 Million units Inaugurated state-
Slide 3: Drives on a legacy of trust
Drives on a legacy of trust Be the Future of Mobility Create | Collaborate | Inspire 3
Slide 4: Is the leading motorcycles and scooters company in the world
Is the leading motorcycles and scooters company in the world Leading motorcycles and scooters manufacturer in the World with Domestic Motorcycle market share of >40% Grow the And Deluxe Win in EV PAM Core segment Premium leadership business * Market share for FY24 on dispatch basis PAM: Parts, Acces
Slide 5: With the largest distribution and sales network in the country
With the largest distribution and sales network in the country 7,600 + 1,500 + Dealer & Network Authorized Service partners Centres Elevated buying experience • Hero 2.0 9,000 Customer Touch Points world-wide • Premia stores Be the Future of Mobility Create | Collaborate | Inspire 5
Slide 6: And a future product portfolio driven by R&D team
And a future product portfolio driven by R&D team State of the art centre for delivering high quality, distinguished products R&D manufacturing, testing, validating of 2w, especially premium, EVs and components Centre of Innovation & Technology, Jaipur Hero Tech Centre, Germany 750+ 1,000+ Engineers
Slide 7: With innovation at the core of its product development
With innovation at the core of its product development Lynx Acro 2.5R XTunt Be the Future of Mobility Create | Collaborate | Inspire 7
Slide 8: A vision to Create, Collaborate & Inspire
A vision to Create, Collaborate & Inspire Financing Premium Electric Vehicle Electric Vehicle Ather Energy Zero Motorcycles Be the Future of Mobility Create | Collaborate | Inspire EMBU CONFIDENTIAL 8
Slide 9: Our products are sold across a growing global footprint
Our products are sold across a growing global footprint Presence in 47+ countries Be the Future of Mobility Create | Collaborate | Inspire 9
Slide 10: The market landscape
The market landscape
Slide 11: Creating platform for robust 2w growth
Creating platform for robust 2w growth Broader economic Rural income, recovery sentiment growth Urban buoyancy Govt. capex push Road construction 2w opportunities Low 2w penetration New launches Premiumisation Financing Mobility a structural need || 2w an income enabler Be the Future of Mobility Cre
Slide 12: Our People
Our People =:
Slide 13: Rich, diverse leadership mix drawn from within and the best in the industry
Rich, diverse leadership mix drawn from within and the best in the industry Leadership team comprises Mr. Niranjan Mr. Vivek Anand Mr. VS Kasbekar Mr. Sanjay Bhan Mr. Ranjivjit Mr. Mike Clarke diverse sectors: Gupta Chief Financial Executive Chief Business Singh Chief Operating Chief Executive Offic
Slide 14: Grow the core
Grow the core
Slide 15: Changing gears: Grow the Core market
Grow the Core market Expand the Rapidly scale up in Recover market Increase share in Accelerate other category and top 10 markets in share in 125cc Scooter revenue streams fortify our brands Global Business Changing gears Deepen the penetration Fortify our brands Attract First Time Buyers • Retail f
Slide 16: Expand the category and fortify our brands: Xtreme 125R
Expand the category and fortify our brands: Xtreme 125R BEST IN CLASS RIDEABILITY STEEL DIAMOND FRAME, SHOWA SUSPENSION ALL NEW SPRINT EBT ENGINE POWER 11 BHP @7500 RPM Changing gears TORQUE 10.4 Nm @ 6000 RPM ALL LED LIGHTINGS FIRST IN SEGMENT SINGLE CHANNEL ABS WIDER TYRES 120/80-17 Be the Future
Slide 17: Distribution network: Upgraded HERO 2.0
Distribution network: Upgraded HERO 2.0 | 460+ stores ACC. |MERCH. WALL CONFIGURATOR COLOR PALETTE LARGE SCREEN ELECTRIC Be the Future of Mobility Create | Collaborate | Inspire 17 17
Slide 18: Retail Financing: A lever for growth
Retail Financing: A lever for growth Financing% has increased over years Digital Retail Finance Marketplace e-Fin platform FY20 FY24 45%+ 60%+ Aggregator finance Further potential to increase finance platform for better finance penetration above and beyond penetration leading to • Government push to
Slide 19: Accelerate other revenue streams: Parts, Accessories & Merchandise
Accelerate other revenue streams: Parts, Accessories & Merchandise 90% Growth since 2019 ~₹5,400Cr in FY24 Increase Efficient Expand breadth logistics portfolio & depth Adjacent opportunities: Oil, other bike Pioneered parts micro-distribution care products added to the business Doubled retailer bas
Slide 20: Premium portfolio
Premium portfolio
Slide 21: Win in Premium
Win in Premium Power brands, premium Elevate the retail buying Premium customer Build portfolio imagery experience journey PRODUCT EXPERIENCE BRAND Changing gears 1. PREMIUM PORTFOLIO 1. NEXT GEN SALES EXPERIENCE 1. BUILDING BRANDS, CULTURE Karizma XMR H-D X440 MAVRICK 440 2. PREMIUMIZING THE CORE 2
Slide 22: Premiumization: Power brands, premium imagery
Power brands, premium imagery Merchandise Premium properties Power brands Changing gears Harley-Davidson Premiumization Be the Future of Mobility Create | Collaborate | Inspire 22
Slide 23: Premiumization of the portfolio to cover broader segment
Premiumization of the portfolio to cover broader segment H-D X440 Mavrick 440 Karizma XMR 210 XPulse 200 4V Xtreme 200S XPulse 200T 4V Xtreme 160 R 4V Sports, Adventure, Roadster Be the Future of Mobility Create | Collaborate | Inspire 23
Slide 24: Premium network: PREMIA stores
Premium network: PREMIA: 15 stores live 100 by year end ✔ Grounds-up fresh stores ✔ Store in a store concept ✔ Virtual exp. – configurator ✔ Tech based product exp. Be the Future of Mobility Create | Collaborate | Inspire 24
Slide 25: Harley-Davidson X440
Slide 26: Launching a Revolution
__ LAUNCHING A REVOLUTION 2023 WAS A HISTORIC YEAR FOR HARLEY-DAVIDSON INT IN JULY, WE LAUNCHED THE HARLEY-DAVIDSON X°440, THE FIRST EVER HARLEY MADE IN INDIA. AND WITH THE B) OF THIS NEW MOTORCYCLE, A WHOLE NEW GENERATION OF MOTORCYCLE ENTHUSIASTS WAS BORN.
Slide 27: Harleys on the roof of the world
In October 2021, we took 5 riders and Ra ANKUSH ma vise AMAR vury 5 Harley-Davidson® Pan America™ 1250s to the AVALUR —GULATI—AKAL PARMAR SANOH—_THOMAS ol8.603.5 ===HARLEYS ON THE ROOF OF THE WORLD.»=———= SRIDERS. 1SPORTSTER™S. . 1805 LAPS. a ‘DR. PAWAN MUNJAL TOLD US TO TAKE x, WARLEY-DAVIDSON® TO
Slide 28: VIDA
VIDA
Slide 29: Dr. Pawan Munjal on VIDA
Dr. Pawan Munjal Executive Chairman “I envision VIDA empowering millions of people around the world to do the right thing, and be a part of the change that they want to see. By creating a positive impact on our planet.” Powered by Hero 29
Slide 30: VIDA V1: Differentiated electric scooter
VIDA V1: Differentiated electric scooter 1. Unmatched performance 2. Removable batteries 2 removable batteries Top speed 80Kmph • • Acceleration 0-40kmph in 3.2 enabling charging anywhere sec anytime • 100+ riding modes • 20 degree incline 3. Real world range 4. Built to Last (RWR) of 110km The most
Slide 31: Strong financials
Strong financials
Slide 32: That is reflected in strong financials
That is reflected in strong financials: ₹1Tn+ market cap* ($13.7Bn) Revenue EBITDA $4.5 Bn $0.6 Bn FY14 FY24 FY14 FY24 Profit after tax Market Cap $0.5 Bn $13.7 Bn FY14 FY24 FY14 Current *Revenue from Operations, EBITDA and PAT figures for FY24; Rounded off in $ terms @ 1$=₹82.78 (FY24 average) *Mar
Slide 33: Margins: Key levers
Margins: Key levers Key margin levers for mid-term Operating leverage 14-16% Sales mix improvement EBITDA margin guidance Premiumisation EV loss optimization with scale-up Be the Future of Mobility Create | Collaborate | Inspire 33
Slide 34: Sustainability as a core value
Sustainability as a core value Achieved 100% Zero Waste to Landfill A year ahead of 2025 target 500% Water positive facilities by 2025 Well on track to achieve; 400%+ achieved already 100% Carbon neutral operations by 2030 On track 34
Slide 35: Hero MotoSports
Hero MotoSports
Slide 36: Be the Future of Mobility
Be the Future of Mobility Create | Collaborate | Inspire EMBU CONFIDENTIAL 36
Slide 37: Thank you
Thank you https://www.linkedin.com/company/heromotocorp/mycompany/ https://www.youtube.com/@HeroMotoCorp https://www.instagram.com/heromotocorp/