Hero Motocorp Limited · NSE:HEROMOTOCO
Hero Motocorp — Investor Presentation (January 2024)
41 slides from Hero Motocorp's investor presentation, Jan 31, 2024
Slide 1: Investor interaction
Investor interaction 23rd January 2024 Updated on January 31st, 2024
Slide 2: 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 3: Recap: 2023
Recap: 2023 Multiple New Launches Elevated Customer Experience Festive: Highest ever sales EBITDA Margin Increase in PAM Revenue Financial market Cap Performance 14.1% 80% ₹ 5,000 Cr Footnote: EBIDTA Margin for Q2FY24, PAM (Parts, Accessories, and Merchandise) revenue for FY23, Market cap gain from
Slide 4: Focus on 3 key aspects, today
Focus on 3 key aspects, today Win in Premium Build EV Leadership Being Digital Be the Future of Mobility Create | Collaborate | Inspire 4
Slide 5: Win in Premium – Product, Experience & Brand
Win in Premium – Product, Experience & Brand PRODUCT EXPERIENCE BRAND 1. PREMIUM PORTFOLIO 1. NEXT GEN SALES EXPERIENCE 1. BUILDING BRANDS, CULTURE Karizma XMR H-D X440 MAVRICK 440 2. PREMIUMIZING THE CORE 2. SERVICE EXPERIENCE 2. BIKING MERCHANDISE RANGE 125R Be the Future of Mobility Create | Coll
Slide 6: Premiumization of the portfolio
Premiumization of the portfolio Hero World 2024 2027E 7 Models Hero World 2020 H-D X440 Mavrick 440 4 Models Xtreme 200S Xtreme 200R Karizma XMR 210 XPulse 200T 4V +++ XPulse 200 4V +++ Xtreme 200S Xtreme 160 R 4V XPulse 200T XPulse 200 Sports, Adventure, Naked, Roadster, Sports, Adventure Sports, A
Slide 7: Differentiated products + multiple industry firsts
Differentiated products + multiple industry firsts Class-D LED Projector lights with Auto Illumination Single Channel ABS USD Suspension Full LED Package Widest Rear tyre TFT Speedometer Xtreme 125R (120/80) HD X440 Power 25.5 PS 440cc ‘TorqX’ Long Stroke Engine Torque 20.4 Nm High Low-end Torque 36
Slide 8: Harley Davidson X440 has gained market share
Harley Davidson X440 has gained market share Supply chain augmentation under way Phase 1 10K/month units for 440cc models and Karizma Be the Future of Mobility Create | Collaborate | Inspire 8
Slide 9: Win in premium with the legend, Karizma
Win in premium with the legend, Karizma Launch event: The biggest yet Peak Viewers: Live Views: 13,600 26,268 3.2 Lakh Bookings 12X Uplift in search Trended on Google Search 1,500 + Delivered A launch with many firsts Next-Gen UX Next-gen social Hyperlocal across Data driven multi- conversation 100%
Slide 10: Modern Roadster
440CC OIL-COOLED ENGINE MAX TORQUE OF 36 Nm @4000 rpm 6 SPEED TRANSMISSION POWERFUL EXHAUST THUMP ALL LED LIGHTINGS THICK FRONT FORKS: 43 MM CONNECTED WITH 36+ FEATURES WIDE FRONT TYRE 110MM Modern Roadster 10 WIDE REAR TYRE
Slide 11: 125R
125R BEST IN CLASS RIDEABILITY STEEL DIAMOND FRAME, SHOWA SUSPENSION ALL NEW SPRINT EBT ENGINE POWER 11 BHP @7500 RPM TORQUE 10.4 Nm @ 6000 RPM ALL LED LIGHTINGS FIRST IN SEGMENT SINGLE CHANNEL ABS WIDER TYRES 120/80-17 Be the Future of Mobility Create | Collaborate | Inspire 11 11
Slide 12: “Premiumizing” the Core
“Premiumizing” the Core 23% CONTRIBUTION TO MIX +25% contribution 16% CONTRIBUTION TO MIX from Range 34% CONTRIBUTION TO MIX 59% CONTRIBUTION TO MIX Be the Future of Mobility Create | Collaborate | Inspire 12 12
Slide 13: Introducing Hero PREMIA
Introducing Hero PREMIA FOUR “NEED BASED” ZONING PHYGITAL EXPERIENCE HARLEY DAVIDSON CONFIGURATOR PERFORMANCE LARGE SCREEN ADVENTURE ELECTRIC Large lit branding Adventure as core theme Delivery from “inside the showroom” Merchandise for every zone Be the Future of Mobility Create | Collaborate | Ins
Slide 14: Hero PREMIA: 3 stores live, 100 by Jun-24 E
Hero PREMIA: 3 stores live 100 by Jun-24 E 3 stores live 100 by Jun-24 ✔ Grounds-up fresh stores ✔ Store in a store concept ✔ Virtual exp. – configurator ✔ Tech based product exp. Be the Future of Mobility Create | Collaborate | Inspire 14
Slide 15: PREMIA Service (3 locations active by Jan-24)
PREMIA Service (3 locations active by Jan-24) Front Facade DIGITAL FIRST Digital Owner’s Manual Customized Vehicle information Personalized Notification Community Forum Service Receiving Area Service Cost Calculator Cost and time variance approval Vehicle Stages update Service Bill payment Feedback
Slide 16: Hero 2.0 | ~300 Stores launched by Mar-24E
HERO 2.0| ~300 Stores launched 400 by Mar-24E ACC. |MERCH. WALL CONFIGURATOR COLOR PALETTE LARGE SCREEN ELECTRIC Be the Future of Mobility Create | Collaborate | Inspire 16 16
Slide 17: Building rally and racing culture
Building rally and racing culture HIGHEST EVER 50+ XDRAGS in FY24 HIGHEST EVER 1ST INDIAN MANUFACTURER TO 30+ XTRACKS in FY24 SPONSOR DAKAR RALLY 17
Slide 18: Comprehensive Premium transformation underway
Comprehensive Premium transformation underway Brand association In-store Product & & creation: Harley Portfolio Experience Premia, Davidson, Mavrick, Hero 2.0 Xpulse, Xtreme Competitive Digital First positioning Be the Future of Mobility Create | Collaborate | Inspire 18
Slide 19: Be the Future of Mobility Create | Collaborate | Inspire
Be the Future of Mobility Create | Collaborate | Inspire
Slide 20: Aspirational, Affordable, Accessible: Emerging mobility
Aspirational, Affordable, Accessible: Emerging mobility 1. Aspirational, 2. Affordable 3. Accessible Connected new variants expansion vehicle Scooters and 100 cities and 150 Motorcycles in the dealers in FY24 Drivers for Industry first features pipeline Emerging Mobility Business 4. Charging Infra 5
Slide 21: Fully loaded, best in class competitive price
Fully loaded, best in class competitive price 1. Unmatched performance 2. Removable batteries • Top speed 80Kmph • 2 removable batteries • 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 T
Slide 22: Aspirational brand, with industry leading features
Aspirational brand, with industry leading features Be the Future of Mobility Create | Collaborate | Inspire
Slide 23: Connected features, vehicle control, user experience
Connected features, vehicle control, user experience Remote A fully connected Trip OTA Keyless Navigation charge Analysis Updates monitoring unlock vehicle, with feature list to enhance the user experience Theft & Track my Geo-fencing Ping my bike accident 24-hour RSA bike alert Be the Future of Mob
Slide 24: VIDA scooter portfolio expansion
VIDA scooter portfolio expansion * Aspirational Be the Future of Mobility Create | Collaborate | Inspire
Slide 25: VIDA motorcycle portfolio under development
VIDA motorcycle portfolio under development * Aspirational Be the Future of Mobility Create | Collaborate | Inspire
Slide 26: Building partnerships
Building partnerships Platform delivering 4 offerings Phase 1: Phase 2: High Performance Mid-high performance Format 1 Format 2 ● Completed $60Mn investment in March ’23 ● Single base platform will be developed which will be used to develop at least 4 offerings Be the Future of Mobility Create | Col
Slide 27: Accessible across 100 cities, 150 dealerships
Accessible across 100 cities, 150 dealerships VIDA Hub, Experience centers Leveraging Hero’s distribution: Premia, Hero 2.0 Expanding VIDA Hubs across key EV Premia stores retailing VIDA & Hero 2.0 cities, in FY 24 have VI integration Be the Future of Mobility Create | Collaborate | Inspire 27
Slide 28: Largest charging network in the country for 2w
Largest charging network in the country for 2w Delhi NCR Dehradun 100+ Cities 850+ Stations Jaipur Guwahati Jodhpur Lucknow Ahmedabad Surat Baroda Kolkata Rajkot Indore 2,000+ Charging points Nagpur Bhubaneswar, Cuttack Mumbai, Kalyan Thane, Pune Nagpur Kolhapur Nashik, Aurangabad Hyderabad Vijayawa
Slide 29: EV Capability Building to be Future-ready
EV Capability Building to be Future-ready Leverage Hero’s scale- Expand network, Build best in class expand scooter portfolio accessible through VIDA aspirational product across premium & Hubs and Hero portfolio affordable segments, dealerships drive penetration Set up the largest Develop exciting f
Slide 30: Hero Digital
Hero Digital Doing Digital to Being Digital Be the Future of Mobility
Slide 31: Why Digital & AI?
Why Digital & AI? AI powers cashier- AI taking away Autonomous Vehicle- Customer are exploring Hero One & Data & Insights less stores customer service jobs to-Everything (V2X) product digitally before Connected Apps driven sales funnel Communication walking to show room AI is disrupting Our industry
Slide 32: Re-imagined Customer Journey – Pre-booking & Booking
Re-imagined Customer Journey – Pre-booking & Booking Personalized Test ride Unique experiences- experience contextual journeys booking engine sound for HD Hyperlocal campaigns Our pre-launch is creating curiosity AR=VR driven 360 Degree AI enabled 2W exchange Booking for configurator valuation Premi
Slide 33: Our Campaigns getting powered by Data & AI
Our Campaigns getting powered by Data & AI Data pooled in from multiple data sources Lead Portal- LSQ WOT/Exchange Module Enquiry Module Service Records GoodLife Asset & Order Insurance Enquiries Generated Customer AI models are delivered for Major data Hyperlocal near ~84 k 4 Cr profiles are 6 8 so
Slide 34: One App - Post Purchase Companion
One App - Post Purchase Companion Standout to Excite | Connect | Attract Engage to Gratify Premium Service to Elate Premia theme RSA Exchange Goodlife Parts Genuity Service Booking Service Status Check Connected 2.0 - Your app is your smartphone on wheel Geofencing Trip Analysis Alerts Vehicle Locat
Slide 35: Industry first features
Industry first features ONDC on App AI image generation Gen AI - Ask me anything Be the Future of Mobility Create | Collaborate | Inspire 35
Slide 36: Retail finance platform - eFin - Pilot in NCR
Retail finance platform - eFin - Pilot in NCR A digital platform that enables customers & dealers to complete end to end 2 wheeler financing journey with ease, transparency & power to choose, which can be accessed from anywhere at any time of day Pilot with 5 financiers # of Sanctions from Platform
Slide 37: As we are building the experiences, these products will drive monetization
“ As we are building the experiences, these products will drive monetization and add to revenue growth. 37
Slide 38: Digital as a growth driver!
Digital as a growth driver! Digital Enquiries are going up Retail & Exchange via Digital Retail via Wheel of Trust - 83,000 vs. LY 3207 In 1 month of launch the new Exchange platform ● 20k journeys initiated Digital Conversion FY 24 : 12.4% ● End to end journey with price check - 6077 Marketing Data
Slide 39: First Ever Digital Booking @ Hero
First Ever Digital Booking @ Hero Overall booking: 25k 54% Online booking: Online X440 13K Bookings Wave I 5,000+ Booking 4 per minute Non Working Peak Hrs Bookings Bookings 2.3 million 536 Website Cities Visits Covered Be the Future of Mobility Create | Collaborate | Inspire 39
Slide 40: Our customers have adopted the app and driving monetization
Our customers have adopted the app and driving monetization 300% Increase in Engagement No. 1 in auto OEM 1 year so far MAU DAU Downloads 2020-22 : 8.3 lakhs | 2023 : 3.5 2020-22 : 165k | 2023 : 1.2 M 2020-22 : 18.3k | 2023 : 131k M 263% 209% 141% *Monthly/ Daily Active User Be the Future of Mobilit
Slide 41: Thank you
AV Thank you