Hero Motocorp Limited · NSE:HEROMOTOCO
Hero Motocorp — Investor Presentation (October 2022)
37 slides from Hero Motocorp's investor presentation, Oct 7, 2022
Slide 1: Filing cover letter to stock exchanges
October 07, 2022 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 S
Slide 2: Investor Meet, 7th Oct 2022
Investor Meet 7th Oct, 2022 Centre of Innovation and Technology Jaipur
Slide 3: Safe harbor plan
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: Agenda
Agenda • Hero MotoCorp – the journey so far • VIDA – leap into the future Be the Future of Mobility Create | Collaborate | Inspire 3
Slide 5: The world's largest Motorcycle and Scooter company
The world’s largest Motorcycle and Scooter company 2022 2021 2020 Launch brand VIDA, 2016 HMCL’s in-house 21 years in a row Reached electric brand 2011 cumulative Expanded global production of 100 1983 footprint to 40 Million units Inaugurated state-of- countries the-art Centre of Hero MotoCorp Inno
Slide 6: Hero MotoCorp has developed a strong ecosystem
Hero MotoCorp has developed a strong ecosystem 2011-12 2021-22 Manufacturing excellence Manufacturing 3 8 facilities Local Global (including Colombia and Bangladesh Extensive Distribution network Global footprint 4 43 countries countries Sourcing and supply Chain at scale # of touchpoints 2,60
Slide 7: Our products are manufactured at world class facilities
Our products are manufactured at world class facilities ~9.5 mn capacity set up across 8 global plants Year of commissioning 1984 1997 2008 2014 2015 2016 2017 2020 Dharuhera Gurugram Haridwar Neemrana Colombia Halol Bangladesh Chittoor Industry leading processes and excellence in quality Be the Fut
Slide 8: Ensuring cost leadership through scale & partnerships
Ensuring cost leadership through scale & partnerships HMCM Promoting 'Make in India' (90%+ bought locally) while leveraging global supply base Be the Future of Mobility Create | Collaborate | Inspire 7
Slide 9: Sold through the largest distribution network in India
Sold through the largest distribution network in India 6,000 1,300 120k+ Dealer & Network Authorized Service Asli Heroes partners Centres Stepping into new- age sales platform Customer 9,000 • 3600 view Touch • Revamped eShop Points • Premia stores Virtual showroom Be the Future of Mobility Create |
Slide 10: And an expanding global footprint
And an expanding global footprint Countries 22 36 39 43 FY12 FY15 FY16 FY17 FY18 FY19 FY20 FY22 4 29 37 41 Presence in key strategic markets with 7% revenue contribution Targeting to cross 15% of total sales Be the Future of Mobility Create | Collaborate | Inspire 9
Slide 11: Portfolio of strong brands developed over the years
Portfolio of strong brands developed over the years Passion Pro HF Deluxe Splendor+ HF100 Most affordable bike Market leader in entry segment World’s largest selling motorcycle Several segment 1stin the category Super Splendor Xtreme 160R Xpulse 200 Glamour Largest # of 125cc in East & More powerful
Slide 12: Significant investments in scaling up R&D
Significant investments in scaling up R&D R&D investments over 5 years Rs. 3,000 Cr Highest spend in the industry CIT Centre of Innovation & Technology, Jaipur Hero Tech Centre, Germany Building platform for the future.. Latest technological 1,000+ enhancements in engineers Tools & Machines Be the F
Slide 13: Led sustainability in the Auto industry; ambitious targets
Led sustainability in the Auto industry; ambitious targets 15+ Certifications, Awards, Recognitions received Top 25 Innovative Centre of Innovation & Commended by Companies of 2021- CII Technology - First R&D the ET as ‘Best Industrial Innovation Centre to be certified as Workplace for Awards “Green
Slide 14: Leadership team with relevant expertise
Leadership team with relevant expertise Mr. Mike Clarke Mr. Suresh Mr. Sanjay Bhan Mr. Niranjan Ms. Reema Jain Chief Operating Jagirdar Dr. Arun Jaura Head - Global Gupta Chief Information Officer and Chief Chief Technology Business Chief Financial General Counsel and Digital Officer Human Resources
Slide 15: Governed by an experienced and diverse Board
Governed by an experienced and diverse Board AIR Chief Marshal Mr. Vikram S. Ms. Vasudha B.S. Dhanoa (Retd.) Ms. Camille Tang Mr. Pradeep Kasbekar Dinodia Non-Executive and Executive Director Non-Executive Dinodia and Independent Non-Executive Non-Executive Independent Director Director Director Dir
Slide 16: In summary…
In summary… 1 Developed a strong ecosystem 2 Built powerful portfolio of brands with leadership 3 Ready to scale up global business 4 Creating full portfolio in premium segments 5 Gearing up for leadership in Emerging mobility Be the Future of Mobility Create | Collaborate | Inspire 15
Slide 17: Agenda
Agenda • Hero MotoCorp – the journey so far • VIDA – leap into the future Be the Future of Mobility Create | Collaborate | Inspire 16
Slide 18: I envision VIDA empowering millions of people around the world
Dr. Pawan Munjal Chairman & CEO “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
Slide 19: Our ambition is to be a global changemaker
Our ambition is to be a global changemaker Powered by Hero 18
Slide 20: EMBU leadership
EMBU leadership Swadesh Srivastava EMBU Head Entrepreneur and angel investor 14 years of work experience in companies including Head for sales, after-sales & marketing 19 years of work experience in ~25 years of work experience in companies companies including including Chandrasekhar Shekhar Mishra
Slide 21: And offers industry leading features
And offers industry leading features Regen/brake INTELLIGENT THROTTLE Accelerate, Brake and Reverse all LATEST 7” TFT W TOUCH using your accelerator Segment leading HMI experience. Acceleration Boost LOW RUNNING COST Costs a pretty paisa!! CONNECTED MULTIPLE CHARGING METHOD Keeping you and your ride
Slide 22: Setup the ultimate mobility ecosystem for seamless customer experience
Setup the ultimate mobility ecosystem to offer seamless and worry-free customer experience Ultimate Mobility Ecosystem Ecosystem offering Product Platform Services A B C D E F High Entirely digital Upgrade your “Reliability and Performance & customer Buy your VIDA VIDA with OTA, “Get Get service Key
Slide 23: Offerings across connectivity, charging and services under subscription plans
Several offerings across connectivity, charging and services; to be priced under subscription plans based on volume sales Remote Keyless Navigation Trip analysis OTA updates charge unlock monitoring Connectivity Track my Theft & Geo-fencing Ping my bike 24-hour RSA bike accident alert Pickup and Lab
Slide 24: VIDA will build an ecosystem across product, platform and services
VIDA will build an ecosystem across product, platform and services Long-term Mid term Here and now Multiple form factors across mobility Deepening of Product lineup Advanced driver assistance & Product Multiple variants and modularity options through introducing new formats autonomous vehicl
Slide 25: Industry leading comprehensive portfolio of offerings at launch
Industry leading comprehensive portfolio of offerings at launch Financing Leasing Exchange Repair on-site offer Battery Assured leasing/ Short term rental subscription* buyback Only player to offer 7 distinct at advantages on launch * Subsequent offering Powered by Hero 24
Slide 26: Vida V1
Vida V1 Bookings start: Oct 10th, 2022 Delivery from: 2nd week of Dec Ex-showroom price: VI Pro Rs.159,000/- V1 Plus: Rs. 145,000/- Powered by Hero 25
Slide 27: We took charge of charging: 3 ways to charge
We took charge of charging: 3 ways to charge Powered by Hero 26
Slide 28: Leverage in-house engineering: Battery Design & Development
Leverage on strong engineering capabilities in-house Battery Design & Development Overview Features / key highlights Battery Battery management system In-house designed, developed and Removable, portable and Smart BMS : manufactured swappable battery packs of ‒ Monitors Battery State, Health,
Slide 29: And capabilities of best in class drivetrain
And capabilities of best in class drivetrain Key highlights Schematics In-house designed, integrated drive-train Polyphase permanent magnet synchronous motor Compact package & size providing advantages over hub & central motors Powered by Hero 28
Slide 30: Extensively tested product components for reliability and safety
Extensively tested product components for reliability and safety Powered by Hero 29
Slide 31: Industry-leading customer experience leveraging technology and physical reach
Industry-leading customer experience leveraging both technology and our unparalleled physical reach Why do we need to reinvent GTM for VIDA? Guiding principles for VIDA GTM 1 2 New-age customer with a digital-first approach Customer Experience Create a ‘Digital first’ at the core contemporary brand
Slide 32: Pillars of VIDA's tech strategy
Pillars of VIDA’s tech strategy Empower Digital Innovation Super Customer Experience Operational Excellence Unlock additional value by innovating, while Leverage connected eco-system Agility towards business creating value propositions using to provide customizable and opportunities & challenges tec
Slide 33: Multi-pronged distribution network - taking advantage of HMCL's reach
Multi-pronged distribution network - taking advantage of HMCL’s reach 3 key pillars of EMBU’s GTM strategy VIDA VIDA VIDA World platform Select Experience Centres in top cities Appoint dealerships and manage performance HMCL EV dealerships dealers Build and manage dealerships based on VIDA s
Slide 34: Serviced through a highly automated line to build battery packs
Serviced through a highly automated line to build battery packs Pack Insertion Foam & Thermal Paste Dispensing Resistance Welding Dismantling Cell Inspection Z Fixation Assy Stack Formation Powered by Hero 33
Slide 35: Sales and volume ramp-up plan
Sales and volume ramp-up plan FY23 FY24 Launch plan Cities Model End-state plan All cities transition to Delhi, Bangalore & Launch with customized EV First 3 cities Jaipur experience centers dealerships based owned & operated by on: VIDA Next 8 cities Chosen next 8 cities - Volume ramp-up, and, EV d
Slide 36: Comprehensively addressing the EV eco-system
Comprehensively addressing the EV eco-system Create Collaborate Inspire Quark 1 Be the Future of Mobility Create | Collaborate | Inspire 35
Slide 37: Thank you!
Thank you! Investor.relations@heromotocorp.com Umang.khurana@heromotocorp.com