Bajaj Auto Investor Meet
1 Bajaj Auto Investor Meet
2 Bajaj Auto Investor Meet Agenda
Welcome Address 11:00 – 11:20
KTM Sports Motorcycles 11:20 – 11:40
Domestic Motorcycles 11:40 – 12:00
Commercial Vehicles 12:00 – 12:20
International Business 12:20 – 12:50
Q & A 12:50 – 13:30
3 Bajaj Auto Investor Meet Quick Highlights – Capacity
Current Capacity per annum ( units in lakh )
Motorcycles : 54.0 - Waluj 24.0 - Chakan 12.0 - Pantnagar 18.0
Three Wheelers ( Waluj ) 6.0
RE 60 ( Waluj ) 0.6
Total 60.6
4 Bajaj Auto Investor Meet Quick Highlights – Volumes
Apr-Nov 14 Apr-Nov 13 Growth
Total Volumes :
Motorcycles 23,72,882 23,36,467 2%
Three Wheelers 3,66,406 3,00,052 22%
Total 27,39,288 26,36,519 4%
Of which Exports :
Motorcycles 10,88,460 8,66,726 26%
Three Wheelers 1,96,880 1,68,620 17%
Total 12,85,340 10,35,346 24%
5 Bajaj Auto Investor Meet Quick Highlights – Financials
Q1 Q2 H1 H1 ( ` in crore ) FY15 FY15 FY15 FY14
Net Sales & 5,299 5,993 11,292 10,171 Operating Income
Total Expenditure 4,261 4,745 9,006 7,911
EBITDA 1,038 1,248 2,286 2,260
% 19.6 20.8 20.2 22.2
PBT * 1,075 1,172 2,247 2,250
PAT * 740 853 1,593 1,575
* before exceptional item 2nd highest in the history of the company
6 Bajaj Auto Investor Meet Quick Highlights – Achievements
In Q2 / FY15 we achieved our
— Highest ever Turnover – ` 6,077 crores
— Highest ever Exports – ` 2,736 crores
— Highest ever Operating EBITDA – ` 1,248 crores
— Highest ever Exports, in units – 5,19,093
— Highest ever Commercial Vehicle, in units – 1,56,429
Ranked in “ top 100 Worlds Most Innovative Companies 2014 ” and “ 5th in top 50 most valuable Indian brands 2014 ”
7 Bajaj Auto Investor Meet Quick Highlights – Operating Margin %
25.0 22.3
20.4 20.2 19.7 19.7 BAL * 20.0 19.0 18.1 17.9 17.9 18.3
15.0 12.4 Hero
10.6 10.6 10.1 10.4 9.7 9.59.7 9.59.9 9.5 10.0 9.1 9.1 9.0 9.39.4 8.2 8.0 8.4 7.4 7.1 7.5 M&M 6.3 4.8 6.2 7.2 Maruti 5.0 4.2 4.3 4.0 4.2 5.3 4.0 3.3 3.2 3.5 3.1 3.5 4.6 TVS 1.5 4.4
0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY13 FY13 FY13 FY13 FY14 FY14 FY14 FY14 FY15 FY15 * excluding Mark-to-Market gain / loss and CSR spends
8 Bajaj Auto Investor Meet Quick Highlights – Operating ROCE
220% 206%*
200%
180%
160% 160%
137% 140%
120%
100% FY13 FY14 H1 FY15
* before exceptional item
9 Bajaj Auto Investor Meet Quick Highlights – ROCE
Funds Blocked with Excise & Sales tax authorities
Excise – Receivable on Exports ` 378 crore
VAT Refund Receivable ` 615 crore
Total as on 30th September 2014 ` 993 crore
Excluding these, our operating ROCE would have been ~400% !!
10 Bajaj Auto Investor Meet Our Business Model
Market share in in-city Market Share In 5 years, this segment is ~88% 45% Growth business has EBITDA 20% nearly TRIPLED Margin EBITDA >20% Margin >20% CV Market Spares 11% Share 7% 44% Pulsar EBITDA EBITDA For every motorcycle Growth 18% Margin Margin sold by a Japanese >20% Exports >20% 20% player, Bajaj Auto 46% Platina sells TWICE as many 7% Margin in-line In 5 years, Export with Market New launch Discover volumes have Industry Share in Q4 11% DOUBLED 23% Thus, for 89% of our business, we can expect “ GROWTH with PROFITABILITY ”
32 Bajaj Auto Investor Meet Quick Highlights – Key Drivers
Operating Fixed Cost as a % to Opg Income Margins Variable Cost Employee 3.6% 19% Fixed Structure Depreciation 1.1% Cost : 7% Others 2.3% Variable Cost : 74%
Working Capital 800 Low CAPEX 600 626 400 345 200
and crore in
` 0 -200 -274 Negative working capital -400 FY13 FY14 H1 FY15
33 Bajaj Auto Investor Meet Quick Highlights – Realization per USD
63.0
62.0 61.5 61.2 60.9 60.9 61.0 59.9 60.0
59.0
58.0
57.0
56.0 55.6
55.0
54.0 Q1 Q2 Q3 Q4 Q1 Q2 FY14 FY14 FY14 FY14 FY15 FY15
34 Bajaj Auto Investor Meet Quick Highlights – Surplus
Surplus Cash, as on 30th September 2014 : ` 8,313 crore
Investments in FMP : ` 4,940 crore
H1 H1 ` in crore FY15 FY14 Dividend received - 27
Treasury Income 136 187
Income from FMP 120 -
Total 256 214
35 KTM
36 Bajaj Auto Investor Meet VOLUME TREND (Units Per Month)
3000
2538 2500 2176
2000
1629
1500 1427 1221
947 1000 889 814 698 549 507 468 500
0 Q1/FY13 Q2/FY13 Q3/FY13 Q4/FY13 Q1/FY14 Q2/FY14 Q3/FY14 Q4/FY14 Q1/FY15 Q2/FY15 Oct 14 Nov 14
37 Bajaj Auto Investor Meet KTM – FASTEST GROWING SPORTS BRAND
% Growth (Apr-Nov YoY) Motorcycle Industry 7% Royal Enfield 70% KTM 71% Harley Davidson 148%
38 Bajaj Auto Investor Meet MARKET SHARE : BY VOLUME
Yamaha R15 MS% Honda CBR MS% KTM MS% 70%
57% 60% 56% 56% 57% 54% 54% 51% 51% 48% 50% 46% 44%
40% 37% 38% 38% 37% 34% 33% 38% 30% 31% 30% 27% 27% 28% 27% 25% 22% 27% 18% 20% 16% 16% 13% 14% 14% 12% 11% 12% 10%
0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Oct-14 Nov'14 (12-13) (12-13) (12-13) (12-13) (13-14) (13-14) (13-14) (13-14) (14-15) (14-15)
39 Bajaj Auto Investor Meet KTM V/S PREMIUM MOTORCYCLE BRANDS
Premium Brands Market Share KTM 75%
Harley Davidson 18%
Triumph 3%
Others 5%
Total 100%
40 Bajaj Auto Investor Meet KTM NETWORK
160 150
140
120 105 150 3S Facilities 100
80 71 128 Dealers 63 60 51 112 Towns 40 33
20
0 Jan'12 Jul'12 Jan'13 Jul'13 Jan'14 Sept'14Oct’14
41 Bajaj Auto Investor Meet REPRESENTATIVE KTM DEALERSHIPS
42 Bajaj Auto Investor Meet PAN INDIA PRESENCE
43 Bajaj Auto Investor Meet KTM TRACK DAYS
Authentic Race Track Experience for Core customers - Nos. Done: 3
44 Bajaj Auto Investor Meet KTM ORANGE DAYS
Motorsports Experience for Amateurs Nos. Done: 30
45 Bajaj Auto Investor Meet ORANGE TOURS
Overnight Touring & Camping Experience for the ‘Non-Racer’ Customer Nos. Done: 11
46 Bajaj Auto Investor Meet SUMMARY
Market Share: No.1
Volume Growth: No.1 Sports Motorcycle Brand
Dealer Network: No. 1
Brand Engagement: No.1
20% Revenue Growth for top 20% of BAL Dealers
47 Bajaj Auto Investor Meet Motorcycle Industry
Premium 0.1% 750 Units per month
18% Sports 1.7 Lacs Units per month
82% Mileage 7.6 Lacs Units per month
Total Motorcycle Industry – 9.3 Lacs units per month
* As of April’14-November’14
48 Bajaj Auto Investor Meet Motorcycle Industry
• Rs. 2.5 Lac + Premium • Multi Cylinders 0.1% 750 Units per month • Premium Features
18% Sports
82% Mileage
49 Bajaj Auto Investor Meet Motorcycle Industry
• Rs. 2.5 Lac + Premium • Multi Cylinders 0.1% 750 Units per month • Premium Features
Harley-Davidson 18% Sports
Kawasaki 82% Mileage
Triumph
50 Bajaj Auto Investor Meet Motorcycle Industry
• Rs. 2.5 Lac + Premium • Multi Cylinders 0.1% 750 Units per month • Premium Features
BAL Market Share Principal Competition 18% Sports Kawasaki – 18% Harley Davidson-62%
82% Mileage
51 Bajaj Auto Investor Meet Motorcycle Industry
Premium 0.1% 0.1% S3 1000 Units per month 18%
82% Mileage
52 Bajaj Auto Investor Meet Motorcycle Industry
S3 • Rs. 1.75Lac - Rs. 2.5 Lacs Premium • 250 cc – 500 cc 0.1% • Advanced Features 0.1% S3 1000 Units per month 18%
82% Mileage
53 Bajaj Auto Investor Meet Motorcycle Industry
S3 • Rs. 1.75Lac - Rs. 2.5 Lacs Premium • 250 cc – 500 cc 0.1% • Advanced Features KTM 0.1% S3 1000 Units per month 18%
Royal Enfield
82% Mileage
Honda
54 Bajaj Auto Investor Meet Motorcycle Industry
S3 • Rs. 1.75Lac - Rs. 2.5 Lacs Premium • 250 cc – 500 cc 0.1% • Advanced Features 0.1% S3 BAL Market Share Principal Competition 1000 Units per month KTM – 53% Royal Enfield – 32% 18%
82% Mileage
55 Bajaj Auto Investor Meet Motorcycle Industry
Premium 0.1% S2 0.1% S3 • Rs. 1Lac - Rs. 1.75Lacs • 150cc-500cc 18% 3.4% S2 • Sports/Touring Features 30000 Units per month
82% Mileage
56 Bajaj Auto Investor Meet Motorcycle Industry
Premium 0.1% S2 0.1% S3 • Rs. 1Lac - Rs. 1.75Lacs • 150cc-500cc KTM 18% 3.4% S2 • Sports/Touring Features 30000 Units per month
82% Mileage Yamaha
Royal Enfield
57 Bajaj Auto Investor Meet Motorcycle Industry
Premium 0.1% S2 0.1% S3 • Rs. 1Lac - Rs. 1.75Lacs • 150cc-500cc 18% 3.4% S2 • Sports/Touring Features 30000 Units per month BAL Market Share Principal Competition
KTM – 4% Royal Enfield – 84% Yamaha – 10% 82% Mileage
58 Bajaj Auto Investor Meet Motorcycle Industry
Premium 0.1% S1 0.1% • Rs. 60,000 – Rs.1 Lac S3 • 150cc-225cc 18% 3.4% S2 • Entry Sports Motorcycle S1 14.5% 1.35 lacs units per month
82% Mileage
59 Bajaj Auto Investor Meet Motorcycle Industry
Premium 0.1% S1 0.1% • Rs. 60,000 – Rs.1 Lac S3 • 150cc-225cc Bajaj Pulsar 18% 3.4% S2 • Entry Sports Motorcycle S1 14.5% 1.35 lacs units per month Yamaha 82% Mileage
Honda
60 Bajaj Auto Investor Meet Motorcycle Industry
Premium 0.1% S1 0.1% • Rs. 60,000 – Rs.1 Lac S3 • 150cc-225cc 18% 3.4% S2 • Entry Sports Motorcycle BAL Market Share Principal Competition S1 14.5% 1.35 lacs units per month Bajaj Pulsar – 44% Honda – 16% Yamaha – 17% 82% Mileage
61 Bajaj Auto Investor Meet Motorcycle Industry
BAL Market Share Principal Competition
Kawasaki – 18% Harley-Davidson – 62% KTM – 53% Royal Enfield – 32% Premium 0.1% 750 units per month Royal Enfield – 84% KTM – 4% Yamaha – 10% 0.1% 1000 unitsS per3 month Honda -16% S2 Bajaj Pulsar- 44% 18% 3.4% 30000 units per month Yamaha -17% S1 14.5% 1.35 lacs units per month
82% Mileage
62 Bajaj Auto Investor Meet
63 Bajaj Auto Investor Meet Motorcycle Industry
P, Premium Bikes from 250 cc + with price upwards 2.5L, multi cyl ++ Premium Features
S3, 250 cc to 500 cc Sports Bikes with price from 1.75L to 2.5L with Advanced Features
S2, 150 cc to 500 cc Sports / Touring Bikes with
price from 1L to 1.75L & Features like Full Fairing.
Sports
– S S S1, 150 cc to 225 cc Entry Sports Bikes with price from Rs 60,000 to 1 L
M3, 125 cc to 150 cc Commuter bikes with price from Rs 49,000 to 60,000
M2, 100 cc Commuter bikes with
price from Rs 44,000 to 51,000 Mileage Mileage (Commuter)
– M1, 100 cc Commuter bikes M M with price upto Rs 44,000
64 Bajaj Auto Investor Meet Motorcycle Industry 8 years
S, (46,058), S, (166,429), 9%, (68,500) 18%, (97,500)
M3, (86,934), M3, (179,203), 18%, (46,000) 19%, (51,000)
M2, (145,392), M2, (393,194), 30%, (44,000) 42%, (48,000)
M1, (207,173), M1, (193,726), 43%, (35,000) 21%, (42,000)
FY 06 FY 15 Segment, (Volume AVPM), Share of Industry, Average Price (Largest Selling Variant)
65 Bajaj Auto Investor Meet Industry Segment Changes - 8 years
100%
90% S 80%
48% 42% 70%
M3 60%
50% 19% 21%
40% M2 FY 14 FY 15 M1 M2 30%
20% M1 10%
0% FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15
66 Bajaj Auto Investor Meet Industry Volume Trend - 8 years
60%
50%
40%
30% BAL MS BAL 20% 7.6% CAGR Industry
10%
0% -5% 0% 5% 10% 15% 20% 25% 30% 35% CAGR M1 M2 M3 S1 S2 S3
67 Bajaj Auto Investor Meet Industry Value Trend - 8 years
60%
50% %
40% 2.8
30%
BAL MS BAL Value CAGR CAGR Value 20%
10%
0% 0% 1% 2% 3% 4% 5% 6% CAGR
M1 M2 M3 S1 S2 S3
68 Bajaj Auto Investor Meet Industry and Customer Segments
S3 RC, Inazuma
S2 Duke, CBR, R 15 Enfield
Pulsar, FZ, Apache S1 Unicorn, Karizma, ZMR, Avenger SZ, GS
M3 Shine Discover, Super Splendor Glamour, Splendor, Passion M2 Dream
M1 HF, Platina, Star, CD
Neutral Youthful Mature 69 Bajaj Auto Investor Meet Current Position
FY14 Market Share - Segment wise FY15 YTD 60%
PULSAR 51% PULSAR MS 45% MS 44% 50% BAL 53,461 45% 45% 45% 46% 46% BAL 59,759 IND 134,731 IND 119,774 42% 41% 39% 40% PLATINA PLATINA MS 24% MS 23% BAL 38,317 30% BAL 44,312 27% 27% IND 162,100 30% IND 193,726 24% 24% 22% DISCOVER 19% DISCOVER 20% 17% 17% MS 14% MS 10% 14% BAL 82,141 11% BAL 54,791 10% 11% IND 569,283 9% 8% IND 572,397 10% 7% 8% 8%
0% FY 14 Apr May Jun Jul Aug Sep Oct Nov
M1 M2+M3 S1
70 Bajaj Auto Investor Meet India : Plan
S3
S2
S1 Pulsar Avenger
M3 X? Discover
M2
Platina M1 Y?
Neutral Youthful Mature 71 Bajaj Auto Investor Meet India : Target
FY14 FY15 YTD Market Share - Segment wise ( Target ) Target 60%
PULSAR PULSAR PULSAR S1, 52% MS 45% MS 44% MS 52% BAL 53,461 BAL 59,759 50% BAL 77,500 IND 150,000 IND 119,774 IND 134,731 S1, 44%
PLATINA PLATINA PLATINA 40% MS 24% MS 23% MS 35% M1, 35% BAL 70,000 BAL 38,317 BAL 44,312 IND 200,000 IND 162,100 IND 193,726 30%
DISCOVER DISCOVER M1, 23% DISCOVER MS 14% MS 10% MS 12% BAL 82,141 BAL 54,791 20% BAL 70,000 IND 569,283 IND 572,397 IND 575,000 M2+M3, 12% M2+M3, 10% 10% MS 20% MS 18% MS 24% BAL 173,919 BAL 158,862 BAL 217,500 IND 850,694 IND 900,853 IND 925,000 0%
72 Bajaj Auto Investor Meet
73 XYZBajaj AutoMotors Investor Meet
REvolution on 4 wheels
An idea whose time has come again. Bajaj Auto Investor Meet Market overview – passenger vehicle
SMALL- 59% BIG- 41%
Defend SMALL BIG Attack leadership
ATUL Others - 11% BAL 20% 18% M&M 19% BAL 80% PVPL 52%
75 Bajaj Auto Investor Meet Small Vehicles
Goal Maintain absolute stability and dominance of market share of over 80%(monopoly>73.9%) in small three wheelers.
PRODUCTS – RE COMPACT • Efficiency: 15% lower running & operating cost. • Performance: dramatic reduction in NVH, superior ergonomics for driver, comfortable ride for user.
– RE OPTIMA • Efficiency: fuel efficient + space • Performance: dramatic reduction in NVH, superior ergonomics for driver, comfortable ride for user.
76 Bajaj Auto Investor Meet Big Vehicles
Goal Substantially increase in our presence in big diesel. 5% market share increase every year.
PRODUCT – RE MAXIMA • Efficiency: 12% more power and 28% more torque with respect to competition for better lugging of heavier loads. • 15% lower running cost. • Performance: Dramatic reduction in NVH, superior ergonomics for driver, comfortable ride for driver & commuter.
77 Bajaj Auto Investor Meet Big Vehicles Growth Industry category growth
2012-13 11% 2014-15 YTD 9% 17% 17% Big vehicles growth 80% 66%
Sustanance Scale up Seeding Sustanance Scale up Seeding Market share growth 2012-13 50% 43% 37% 2014-15 YTD 40% 31% 30% 24% 20% 12% 8% 10% 0% Sustanance Scale up Seeding
78 Bajaj Auto Investor Meet Front End Differentiation
. Channel: • Be first than better; East UP, Bihar. • Direct sales ;1000 sales & service points. . Sales process: • Strategize at tehsil level. • Start by gaining leading market shares in areas where competition is weak. • Move in from there. . Quality sales people: • Intensive training programs. • Content drawn from customer interactions and frequently raised objections. • Hand holding sales force at new dealerships. . Financing: • Differentiated products through BFL. • Competitive financing from other financing companies. • Continue tie ups with nationalized banks. . Promotion: • Focus on one on one interactions during customer engagement programs.
79 Bajaj Auto Investor Meet Bajaj Auto Investor Meet RE60 - Opportunities
1.Smarter employment.
2.Smart Taxi for smaller towns.
3.First/Last-mile connectivity for transport heads.
4.Self-drive rental.
5.Smart school cart.
6.Green transport for future cities.
7.Safe transport .
81 Bajaj Auto Investor Meet RE 60 – pitch to taxi fleet owners
There are at least 10 major radio Cab/Taxi operators in India. • Meru, Wings, Mega Cabs, Easy Cabs, Ola, Uber, Taxi for Sure, TAB Cabs, Fast Track, Sawaari.
Fare war has started among them with some of them offering services at fares that are close to auto- rickshaw, clearly not sustainable.
RE 60 offers an opportunity to offer these fares while being economically viable.
RE 60 also offers an opportunity to expand their customer base at the present locations and also add other tier 2 and tier 3 towns to their operations.
82 Bajaj Auto Investor Meet RE 60 – pitch to freelancers in public service
Z AC
0 0.5 1 1.5 2 11 11.5 12 12.5 13 13.5 14 14.5 15 15.5 16 16.5 17 17.5 18 Rs / Km
Fare/Km in Rupees Auto Taxi Pune 11.65 16 B 'lore 13 17 Mumbai 11.33 17
Intra-city vehicle, positioned between the Autorickshaw and the 4 wheeler taxi.
83 Bajaj Auto Investor Meet RE 60 - Current Status
• ARAI Testing ARAI has almost completed the testing of the vehicle for type approval
• Writ petitions Writ petitions have been filed by auto rickshaw union/ Individuals in the High courts .
The prayer in all the Writs is to stay the implementation of notification GSR 99E pertaining to Quadricycles.
The Government of India is filing a transfer petition in the supreme court seeking to transfer all cases to the supreme court on the plea that the matter being the same and pertaining to legislation, it should be heard at the apex court.
84 Bajaj Auto Investor Meet Outlook 2015
800,000
700,000
600,000 250,000
500,000 62% 400,000 196,000 300,000 250,000
200,000 268,659 100,000 196,000 129,063 89,959 49,637 - 3W Pass. 3W Cargo 4W Pass. 4W Cargo Total SCV BAL absent 3W Competitors BAL
Bajaj Auto, currently, participates in 62% of the small commercial vehicle industry consisting of – All 3 wheelers, Tata Ace, Magic, Venture, Zip, and Iris, M&M Maxximo, Gio
85 Bajaj Auto Investor Meet
International Business
86 Bajaj Auto Investor Meet Annual variations but on the growth track
2,000 350 CAGR: 17% CAGR: 12% 312 294 1,622 FY15 : 13% FY15 : 25% 300 254 261 1,500 1,255 1,275 1,299 250 231
200 165 Thousands Thousands 972 1,000 726 150 100 500 50 - - FY10 FY11 FY12 FY13 FY14 FY15 FY10 FY11 FY12 FY13 FY14 FY15 (E) (E) Motorcycle Exports (Vol.) 3 Wheeler Exports (Vol.)
1,800 12,000 1,620.00 1,600 10,310.00 CAGR: 19% CAGR: 26% 1,369.02 1,330.04 10,000 1,400 FY15 : 22% 1,309.07 FY15 : 26% 8,210.36 1,200 8,000 974.61 6,603.97 6,752.43 1,000 6,000 800 681.72 4,551.75 600 4,000 3,245.81 400 2,000 200
- - FY10 FY11 FY12 FY13 FY14 FY15 (E) FY10 FY11 FY12 FY13 FY14 FY15 (E) Total Exports (in USD Mn) Total Exports (in INR Cr)
87 Bajaj Auto Investor Meet … Across all Segments and Brands…
300 450 255 256 396 400 250 CAGR: 28% 236 226 CAGR: 17% SOB : 13% 350 SOB : 23%
200 188 300 Thousands Thousands 251 235 250 233 223 150 200 180 100 73 150 100 50 50 0 - FY10 FY11 FY12 FY13 FY14 FY15 (E) FY10 FY11 FY12 FY13 FY14 FY15 (E) Sports: Pulsar Commuter: Discover and Platina
1,200 350 312 294 962 300 1,000 CAGR: 17% CAGR: 12% 254 261 SOB : 50% 813 834 SOB : 14%
748 250 231 Thousands Thousands 800 200 165 600 546 445 150 400 100 200 50 - - FY10 FY11 FY12 FY13 FY14 FY15 (E) FY10 FY11 FY12 FY13 FY14 FY15 (E) Utility: Boxer and CT 3 Wheeler: RE
88 Bajaj Auto Investor Meet … And Regions…
800 CAGR: 16% 743 CAGR: 21% SOB: 46% 500 SOB: 29% 467 700 648 652 MS: 27% 588 MS: 44% 600 400
Thousands 500 286 421 261 267 Thousands 300 400 346 237 184 300 200 200 100 100 - 0 FY10 FY11 FY12 FY13 FY14 FY15 FY10 FY11 FY12 FY13 FY14 FY15 (E) (E) Africa South Asia & Middle East
140 CAGR: 6% 133 CAGR: 21% 350 SOB:6% 116 SOB: 19% 309 120 113 MS: 7% 108 103 300 MS: 25% 274 272 248 100 250 Thousands 77 80 Thousands 200 176 60 150 119 40 100 20 50 0 - FY10 FY11 FY12 FY13 FY14 FY15 (E) FY10 FY11 FY12 FY13 FY14 FY15 (E) ASEAN Latin America
89 Bajaj Auto Investor Meet … Including 3 Wheelers……
95 CAGR: 9% 100 CAGR: 22% 250 SOB: 57% 221 90 SOB: 32% MS:95% 80 MS: 51% 200 70 160 159 167
70 156 Thousands Thousands 58 58 150 60 48 109 50 100 40 35 30 50 20 10 0 - FY10 FY11 FY12 FY13 FY14 FY15 (E) FY10 FY11 FY12 FY13 FY14 FY15 (E) Africa South Asia & Middle East
1,400 1,259 1,212 40 35 1,200 35 CAGR: 9% 33 990 1,010 30 31 1,000 950 30 SOB: 10% MS: 76% 26
Thousands 25 800 20 20 600 15 400 10 200 5 - - FY10 FY11 FY12 FY13 FY14 FY15 (E) FY10 FY11 FY12 FY13 FY14 FY15 (E) ASEAN Latin America
90 Bajaj Auto Investor Meet Ensuring 85% Sales from leadership markets MCY: Market Share CV: Market Share Market Market Region Country Position Region Country Position Share * Share * Sri Lanka 80% 1 South Asia Sri Lanka 91% 1 South Asia Bangladesh 54% 1 And Bangladesh 98% 1 And Nepal 40% 1 Middle East Egypt 98% 1 Middle East Egypt 28% 1 Sudan 97% 1 Iran 28% 1 Africa Nigeria 52% 1 ASEAN Philippines 30% 1 Uganda 88% 1 Ethiopia 51% 1 South Sudan 58% 1 Mexico 92% 1 Ethiopia 49% 1 Central America 82% 1 Latin America Nigeria 42% 1 Peru 83% 1 Africa Congo 33% 1 Colombia 64% 1 Kenya 25% 1 Angola 29% 1 Tanzania 16% 2 Colombia 44% 1 Guatemala 34% 1 Latin America Nicaragua 46% 1 Honduras 18% 2 Peru 19% 2 *Market Shares based on BAL internal estimates
91 Bajaj Auto Investor Meet Looking ahead It’s The Best of Times and The Worst of Times !
Opportunities Challenges
• Most markets are still Under-penetrated • Volatile currency situation
100 80 • Retail pricing 80 • Availability of forex Penetration 60 M/C per 1000 42 persons 40 17 20 0 • Uncertain political and economic times Africa Asia and ME Latin America • Duties • Market Share has room to grow, particularly opp Chinese • Trade restrictions • Interruptions Indian BAL 3% 23% Chinese 47% Japanese 27% • Competitive intensity
• Emerging markets focus by Japanese • Uptrading trend towards better bikes • India sourcing • Higher cc • Chinese companies under pressure in domestic • Better styling
92 Bajaj Auto Investor Meet Strategic Approach
II. User: A Better Experience
• Double in 4-5 years
• Equal or better than Corporate EBITDA
• Over 90% business from no. 1 or 2 markets
I. Geography: III. Distributor: Wide & Deep Management Excellence
93 Bajaj Auto Investor Meet Scope for expansion in current markets Existing Markets : Increase share
Existing Market Type No of Countries Market Size FY14 BAL FY14 BAL M.S. Mature ( > 5years) 25 4.2 mn 1.18 mn 28 % Nascent ( 2-5 years) 7 0.5 mn 95,552 20 % New ( 0-2 years) 16 0.95 mn 23,620 3 % Total 48 5.65 mn 1.3 mn 23 %
94 Bajaj Auto Investor Meet Continue expansion into new markets New Markets Entry : Maximize presence ; Leverage Alliances
New Market Type No of countries Market Size FY14 Existing 48 5.65 mn Enter Now (0-2 years) 28 2.75 mn Enter Later ( > 2 years) 22 0.75 mn
95 Bajaj Auto Investor Meet Geography: New market entry is on track
Market Assessment Partner Identification Entry
Market Business Identify Retail Agreement Shipment Information Case Partner Launch
MCY OUTLOOK 25 new markets 5 new markets 13 new markets
3W OUTLOOK 5 new markets 2 new markets 14 new markets
96 Bajaj Auto Investor Meet Deliver a Differentiated User Experience
Differentiators
Basics Basics
Differentiators 97 Bajaj Auto Investor Meet Nigeria User experience drives share & premium
3S Network : 8 3S Network : 86 3S Network : 172 Premium: 8-10% Premium: 20-30%
600,000 50% 43% 43% 45% 500,000 39% 40% 33% 35% 400,000 27% 28% 30% 300,000 25% 20% 200,000 12% 15% 7% 10% 100,000 2% 5% 0 0% FY'07 FY'08 FY'09 FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 P
Exports Volume Market share
98 Bajaj Auto Investor Meet LATAM
User Experience builds leadership for Pulsar Sport Segment Market Shares in key markets
60% 56% 53% 51% 50% 50%
40% 36% 35% 34% 31% 30% 30% 30% 28% 25% 21% 20% 18% 16% 15% 15% 12% 10% 10% 10% 7% 7%7% 3%
0% Colombia CA Mexico Peru Argentina LATAM
Bajaj Yamaha Honda Others
99 Bajaj Auto RE in Egypt: Category Development Investor Meet
Egypt : 10 times sales growth in 10 years
80000 68,500 70000 66,286 65,450 63,547
60000
50000 42,939 41,228 40,656 38,720 40000 35949
30000
20000 16667
10000 6282
0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15(E)
100 Bajaj Auto Investor Meet Distributor – Management Excellence
• Business model of choice: • Entrepreneurial energy and expertise • Allows rapid entry and growth • Needs high level of management input
• Strategy and Plans are jointly agreed. • Regular Review Process
• Distributor manages supply chain & executes • From Trading to Distribution to Customer Care • Configure local assembly operations on cost and legislation
• Bajaj provides commercial, marketing and technical inputs • Support is based on market type : New; Nascent; Mature
85% of the Sales come from distributors who have been with BAL for > 10 years
ONE TEAM
101 Bajaj Auto Distributor brands strengthen local connect Investor Meet and trust 3S Stores
Turkey Egypt
Argentina Sri Lanka 102 Bajaj Auto The growth momentum is expected to Investor Meet continue…
4000000
3500000 600000 450,000
3000000
2500000 1200000
2000000 294,193 3,250,000 1500000 260,762
1000000 1,621,669 1,299,380 LEGEND 500000 3 Wheelers
0 Motorcycles FY 2014 FY 2015 € Existing New FY20XX (P)
103 Bajaj Auto Investor Meet
धꅍयवाद. Gracias y buena suerte
نشكركم ونتمنى لكم حظا سعيدا
Thank You!
Pagpalain kayo at maraming salamat po!
terima kasih dan semoga sukses
ধꇍযবাদ. আন্তরিক �ভেচ্ছা
104