Investor Meet

1 Bajaj Auto Investor Meet

2 Bajaj Auto Investor Meet Agenda

Welcome Address 11:00 – 11:20

KTM Sports 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 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% 70% KTM 71% Harley Davidson 148%

38 Bajaj Auto Investor Meet MARKET SHARE : BY VOLUME

Yamaha R15 MS% 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 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 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, 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