Hero Motocorp Limited · NSE:HEROMOTOCO
Hero Motocorp — Investor Presentation (June 2024)
38 slides from Hero Motocorp's investor presentation, Jun 17, 2024
Slide 1: Presentation – Analyst / investor meet
it Hero June 17, 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: HEROMOT
Slide 2: Corporate Overview June 2024
1 I Hero MotoCorp Ltd. n Corporate Overview June 2024 • `,& • S:7 \\.
Slide 3: The world's largest Motorcycle and Scooter company
The world’s largest Motorcycle and Scooter company IS Hero 2023 WORLD'S 2022 NO. 2021 2020 Multiple Premium Launch brand VIDA, launches including .11 O. ELEA Co mpi xr 2016 HMCL’s in-house H-D X440 22 years in a row Reached electric brand 2011 cumulative FIL E Y- Expanded global CIAVIO.SDAI producti
Slide 4: Drives on a legacy of trust
Drives on a legacy of trust It MANUFACTURING #1 8 lib MANUFACTURING HAPPINESS SINCE TWO-WHEELER MANUFACTURER FACILITIES 1985 sb :to With innovation at its core, Hero MotoCorp continues 1.4P to provide mobility to the aspirations of millions around the world. 9000+ 47+ CUSTOMER TOUCH POINTS WORLDWIDE
Slide 5: 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 ti / +eh • me- 1, . '1 . V40 a * Market share for FY24 on d
Slide 6: With the largest distribution and sales network in the country
With the largest distribution and sales network in the country :Ilt Or" 1, , 4 (1) '40 116 tO 4 le 114 114 ..4 1,4 D D D D D j -DD Ili it 7,600 + 1,500 + Dealer & Network Authorized Service 1D4' I rC , 7, D partners Centres 4, .4,, Do ; t Elevated buying experience a ' , llkr -immar.diammomanft:I •
Slide 7: 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 • ••c • 'di ••• delivering high quality, •II. distinguished products R&D manufacturing, testing, validating of 2w, especially premium, EVs and components Centre of Innovation & Technology, Jaipur Hero Tech Centre, Germany
Slide 8: With innovation at the core of its product development
With innovation at the core of its product development Lynx a v dAgg CHANGING Acro VEHICLE *--.71747i 2.5R XTunt AlliF7-10" • • ".?' Be the Future of Mobility Create | Collaborate | Inspire 7
Slide 9: A vision to Create, Collaborate & Inspire
A vision to Create, Collaborate & Inspire Financing Premium \ \ I—LiellgtSlor— I i Hero FINCORP Ar.•41.07CPSCW- Electric Vehicle Electric Vehicle 0 \ Ather Energy Zero Motorcycles Hero Be the Future of Mobility Create | Collaborate | Inspire EMBU CONFIDENTIAL 8 it
Slide 10: Our products are sold across a growing global footprint
Our products are sold across a growing global footprint N S 'Ilmt_a"" te r AFRICA & MIDDLE EAST 0%r = aP Pi IAN X :ian ZAMS RI E\Z IA IR O rr" C,A YEMEN OATA CENTRAL AND SOUTH AMERICA I sor EL SALVADOR HONDURAS NICARAGUA COSTA RIG Presence in 47+ countries Hero Be the Future of Mobility Create | Col
Slide 11: The market landscape
• ••• The market landscape 3. • '• - •• • t. • 44:1- 4•17 X..c.f.r.--‘ ".• - • r• ' •04 .r. • • • W.' . - -•• • 55-"'• • • • -*".-••-•/- , 4.. , ;,--- =,,,.--,Ar - , . -..- :.---4 -"••• • do - ....• -:... , .;,...s • ,5' ...i ..--- --AI ' le A . -• ' ft % - rli .D .- a••• tu„ 0.. . •.' ,... ..... i•
Slide 12: Creating platform for robust 2w growth
Creating platform for robust 2w growth I I I I I I I I I 11 Broader economic Rural income, recovery sentiment growth Urban buoyancy Govt. capex push Road construction II ON ON ON NNE 2w MOO MOON■ ONO opportunities Low 2w penetration New launches Premiumisation Financing Mobility a structural need ||
Slide 13: Our People
• • J rOa > 1.• • ISO ••• •Ife'r • • • ' 44; • • 1. •• ti t' - • 11" fe'•••••, 4 • -554Y 4 r -fir ••••• C • V7- OltI?' 4 P a .4 • • •• • .04 " .• • . • • tea ssi .: a r er • q • • •kketo s„. • 1 • Sty- r:et" "CI t• Net° ti kiet. 'a. ••• 4 „. A iv',' i 44 04-.ai• 0.0 lair riezip• 46 • • •1 ,•• q•••••
Slide 14: 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 Ok t 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
Slide 15: Grow the core
• ••• Grow the core 3. • '• - •• • t. • 44:1- 4•17 X..c.f.r.--‘ ".• - • r• ' •04 .r. • • • W.' . - -•• • 55-"'• • • • -*".-••-•/- , 4.. , ;,--- =,,,.--,Ar - , . -..- :.---4 -"••• • do - ....• -:... , .;,...s • ,5' ...i ..--- --AI ' le A . -• ' ft % - rli .D .- a••• tu„ 0.. . •.' ,... ..... i• • • •
Slide 16: Changing gears
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 1111 1111 1111 125cc Attract First
Slide 17: Changing gears: Xtreme 125R
Expand the category and fortify our brands: Xtreme 125R BEST IN CLASS RIDEABILITY STEEL DIAMOND FRAME, SHOWA SUSPENSION 0 to ALL NEW SPRINT EBT ENGINE POWER 11 BHP @7500 RPM Changing gears TORQUE 10.4 Nm @ 6000 RPM 0 ALL LED LIGHTINGS • • tint a Al • FIRST IN SEGMENT SINGLE CHANNEL ABS ets ;2$ WIDER
Slide 18: Distribution network: Upgraded HERO 2.0
Distribution network: Upgraded HERO 2.0 | 460+ stores "Ik • I ► . e. ti• s- ■ ACC. |MERCH. WALL CONFIGURATOR COLOR PALETTE LARGE SCREEN na ELECTRIC _ Be the Future of Mobility Create | Collaborate | Inspire 17 17
Slide 19: 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 Hero 45%+ 60%+ PRE APPROVED OFFERS rams" CUSCIIISZ 1LR Virntiny, Aggregator finance 35o OSII (MIS NI. --0 Further potential to increase finance platform for better fin
Slide 20: Accelerate other revenue streams: Parts, Accessories & Merchandise
Accelerate other revenue streams: Parts, Accessories & Merchandise LET YOUR VEHIClE 111.1%••••% SHINE ALWAYS Presenting New HERO PAINT PROTECTION KIT 90% LET YOUR VEHICLE LOOK LIKE NEW Growth since 2019 ~₹5,400Cr in FY24 ati liter Presenting New Increase WASHING COIVSLINIABLES Efficient Expand tr, b
Slide 21: Premium portfolio
• ••• Premium portfolio 3. • '• - •• • t. • 44:1- 4•17 X..c.f.r.--‘ ".• - • r• ' •04 .r. • • • W.' . - -•• • 55-"'• • • • -*".-••-•/- , 4.. , ;,--- =,,,.--,Ar - , . -..- :.---4 -"••• • do - ....• -:... , .;,...s • ,5' ...i ..--- --AI ' le A . -• ' ft % - rli .D .- a••• tu„ 0.. . •.' ,... ..... i• •
Slide 22: Changing gears: 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 S BRANDS, CULTURE PRNIA liCri7/7A S HERO 2.0 e a mAcklirVir taAvioSON A'KAP
Slide 23: Premiumization
Power brands, premium imagery THE NOE Of FREEDOM IONS_ i7oVAIG.5" alp Merchandise '":"eILAN 3 Premium properties Power brands IKING Changing gears CHALLENGEWILL Harley-Davidson PROVIDE INDIA ITS fi- NEXT RACING STARS RALLY L-7111 COLLECTION Premiumization C '44 • OS- !Se - •.• Hero Be the Future of
Slide 24: Premiumization of the portfolio to cover broader segment
Premiumization of the portfolio to cover broader segment V *VI H-D X440 Mavrick 440 Karizma XMR 210 taus N.„„ XPulse 200 4V Xtreme 200S XPulse 200T 4V Xtreme 160 R 4V Sports, Adventure, Roadster Hero Be the Future of Mobility Create | Collaborate | Inspire 23
Slide 25: Premium network: PREMIA
Premium network: PREMIA: 15 stores live 100 by year end 100 IN RN MIN Mu -I no It PREMIA II III ✔ Grounds-up fresh stores ✔ Store in a store concept PIP ts- ' ✔ Virtual exp. – configurator lit FUERi iHIN. • I S ✔ Tech based product exp. Int CHANCE Be the Future of Mobility Create | Collaborate | In
Slide 26: is MAL 0.041•04740SCW
MAL is 0.041•04740SCW
Slide 27: Launching a Revolution
C-) LAUN HING A REVO UTION r 2023 WAS A HISTORIC YEAR FOR HARLEY-DAVIDSON" IN INDIA. IN JULY, WE LAUNCHED THE HARLEY-DAVIDSON r440, THE FIRST EVER HARLEY MADE IN INDIA. AND WITH THE BIRT OF THIS NEW MOTORCYCLE, AWHOLE NEW GENERATION OF MOTORCYCLE ENTHUSIASTS WAS BORN. O - K._ e JULY 2023 • Hero Moto
Slide 28: Harleys on the roof of the world
In October 2021, we took 5 riders and RAVI AMMO VIR VIJAY MAR VIJAY 5 Harley-Davidson' Pan Americar" 1250s to the AVALON MLATI NMAI PINAR SIMON. THOMAS highest unpaved motorable road in the world, and conquered the Key La Pass in Ladakh. It took us 12 days. 4. --t It was time for a newer, bigger cha
Slide 29: VIDA
VIDA .\• -0
Slide 30: VIDA: Dr. Pawan Munjal vision
VVIDA 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 31: VIDA V1: Differentiated electric scooter
VIDA V1: Differentiated electric scooter 1. Unmatched performance 2. Removable batteries 2 removable batteries uovilou Top speed 80Kmph • ooss —*Ws ounscoatOt • Acceleration 0-40kmph in 3.2 enabling charging anywhere Et-tu a,12499' sec anytime v=" i tiogore 100+ riding modes eta 0 es W • °Etcn rest
Slide 32: Strong financials
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Slide 33: That is reflected in strong financials
That is reflected in strong financials: ₹1Tn+ market cap* ($13.7Bn) Revenue 1.51(in 10 years EBITDA 1.51(in 1.0 years $4.5 Bn $0.6 Bn FY14 FY24 FY14 FY24 Profit after tax 19101.0 yeacs Market Cap 25,;n1oleacs $0.5 Bn $13.7 Bn FY14 FY24 FY14 Current *Revenue from Operations, EBITDA and PAT figures fo
Slide 34: 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 it Hero Be the Future of Mobility Create | Collaborate | Inspire 33
Slide 35: 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 36: Hero MotoSports
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Slide 37: Hero MotoSports
I HOW HERO MOTOSPORTS fry ite; NSW * 4 1 is.kwougiril!!).77,----- ---it t gi • ,.-.Ii•- 'Mr ' I ?r_r;-.. - Al, v ,•1 "-. ;i• 'h -rit,2-- - i )3.. '"-,-•---. 440 r., id,„,.,„ errs, ‘:r ..i• , . ii li 7144 -- 'l l .•,V I - "4-'- al0 L 1, _ icfs,.;4 1::(1_ ,.,,,,,:,,:.__:,., ..b_:_Ili— i ' -•:;:r_ '. -
Slide 38: Thank you
Hero Thank you https://www.linkedin.com/company/heromotocorp/mycompany/ https://www.youtube.com/@HeroMotoCorp https://www.instagram.com/heromotocorp/