slide no. 1 ir meeting – june2010 powered to fly high
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Slide no. 1IR meeting – June’2010
Powered to Fly High
Slide no. 2IR meeting – June’2010
Structure of presentation
TVS Group
Industry outlook
TVSM : Poised for quality growth
Slide no. 3IR meeting – June’2010
Established 1911
Two-Wheelers& Three Wheelers
A fast growing Automobile Company
in India
Non-automotive
Pioneers in IT Hardware in India
andFinancial Services
Vehicle Dealership& Logistics
Largest Auto parts distributor
Largest car and truck dealership In
India
Auto Components
Largest Auto Components
Manufacturer in India
The TVS Group
Slide no. 4IR meeting – June’2010
TVS Group - Our Journey
Launch of Logistic Network
Begin Financial Services
Two wheeler Manufacturin
g
Dealership Agreement with
GM - 1929
Auto Components Manufacturing -
1961
Entry into Electronics Manufacturing
Launch of Bus Service -
1911
Established Overseas
plants
• Exports of 2W to 55 countries
•Exports to over 30 countries
•Largest in India
Trust Value Service
1920 1930 1940 1950 1960 1970 1980 1990 2000 2009
Three wheeler
Manufacturing
Slide no. 5IR meeting – June’2010
TVS Group - Awards & Recognition Deming Quality Award
Sundaram Clayton Brakes India TVS Motor Company Sundaram Brake Linings Lucas-TVS
Japan Quality Medal Sundaram Clayton
TPM Excellence awards Sundram Fasteners Brakes India TVS Motor Company Sundaram Auto Components Ltd
Slide no. 6IR meeting – June’2010
India remains a lucrative market India is the second largest two-
wheeler market in the world with sales of ~9.4 mn units in domestic market in FY10 However, penetration levels still very
low compared to other countries
such as China, Indonesia etc. Strong GDP growth at 8%+ augurs
well for the Indian economy Rising per capita income to enhance
affordability, and demand for two-wheelers Lack of public transport Emergence of a large young working
population
Low penetration rate despite India being 2nd largest market
253 236148
64 59 55
595
0100200300400500600700
Taiw
an
Thai
land
Viet
nam
Indo
nesi
a
Chin
a
Braz
il
Indi
a
(per 1000)
Increasing per-capita income
600687
773850
9351,029
0
300
600
900
1,200
FY07
FY08
FY09
FY10
E
FY11
E
FY12
E
($)
Source: KPMG
Source: CSO, ENAM Research
Slide no. 7IR meeting – June’2010
India – Macro perspective
Secular rural demand Stimuli such as NREGA will
help positive thrust in rural consumption
Higher MSP
Retail Financing improving with structural changes CIBIL checks mandatory Higher down payment Absence of DSAs Tighter credit norms
Credit sales improving
50
20
30
0
10
20
30
40
50
60
FY07 FY10 FY11E
(%)
Slide no. 8IR meeting – June’2010
310360
420469
548631 665 674 706
876
0
300
600
900
00-01 01-02 '02-03 03-04 '04-05 '05-06 '06-07 '07-08 '08-09 '09-10
Motorcycles Ungeared scooters Mopeds Scooters
(nos. in 000’s )
Two Wheeler Industry – Average Monthly sales
Slide no. 9IR meeting – June’2010
Executive segment, the key focus area
Motorcycles – Industry Structure
49% 50%53%
57% 60%
10% 11% 13% 14% 15%
25%29%41%
34%39%
0%
25%
50%
75%
100%
2005-066.19 mn
2006-077.08 mn
2007-086.55 mn
2008-096.81mn
2009-108.43 mn
Economy Executive Premium
Slide no. 10IR meeting – June’2010
TVSM – poised for Quality growth
Slide no. 11IR meeting – June’2010
TVSM - Company overview
One of the largest two and three wheeler companies A state of the art manufacturing plants located in
Karnataka, Tamil Nadu, Himachal Pradesh and Indonesia Capacity 24 lakh vehicles (2009-10) being increased to 28
Lakhs Strong World class in-house R & D Robust supplier base Extensive all India sales & service network Rapid growth in exports Sales ( 2009-10) : Rs. 4431 Cr.
Slide no. 12IR meeting – June’2010
610
258
409
645
259
438
638
310
572
200
575
950
1325
1700
2007-08 2008-09 2009-10
Motorcycles Scooters Mopeds
(nos. in 000’s )
866
1342 1277
1520
Strong presence in all 3 segments
Slide no. 13IR meeting – June’2010
Number of Dealers 641January 2010
97180
137
227
North South West East
Strong All India distribution network
TVSM has a robust two tier distribution network with 641 exclusive dealers supplemented by more than 2000 sales & service points
Slide no. 14IR meeting – June’2010
A complete portfolio with product at every price point
XL Super / Heavy duty
15000
20000
25000
30000
35000
40000
45000
50000
60000
MOPEDS UNGEAREDSCOOTERS
MOTORCYCLES
Ex-S
how
room
pri
ce-B
ang
alo
re (
June’1
0)
Flame SR 125
Apacheseries
StaR series
Scooty Pep
Streak
JiveWeGo
Complete product range
Slide no. 15IR meeting – June’2010
TVS Jive – 110cc
India’s first auto clutch motorcycle Launched in April’10 with pan-India availability by June/
July’10 Positioned in the Executive segment, which accounts for 60%
+ of the motorcycle market Initial response very satisfactory.
Slide no. 16IR meeting – June’2010
TVS Apache RTR – 180cc
Slide no. 17IR meeting – June’2010
Un-geared Scooters – Steadily gain momentum Industry
CAGR (5 years) 12%
Account for 14% of the two wheeler segment
TVSM TVSM strong in the sub 100 segment. However overall TVSM
Market share lower in the absence of bigger scooter.
Launch of WeGo will address this issue
Slide no. 18IR meeting – June’2010
Cell phone charger
Get charged on the move!
New 90 cc engine
More power for that zippy ride
Under seat storage illumination
No more fumbling in the dark
Patented EZ center stand
No huffing. No puffing. Park effortlessly
Self glow ignition key ring
Now visible in the dark
Trendy decals
A vibrant & stylish look
Best Design of the year 2008
Overdrive awards
Slide no. 19IR meeting – June’2010
Scooty Streak
Launched in Sept 2008 With 6 never before features, and leading edge styling
Slide no. 20IR meeting – June’2010
TVS WeGo – 110cc
Multi-user friendly vehicle Equipped with
Unique design technology - Body Balance Large 12 inch alloy wheels Big internal storage space LED tail lamp
Slide no. 21IR meeting – June’2010
The stylish TVS KING
Slide no. 22IR meeting – June’2010
The stylish TVS KING
TVS entered the 3W market towards the end of FY08, with TVS-King.
TVS-King engineered with ‘best in class’ features.
Achieved average monthly Sales of 2500 nos in April/May ‘2010
Large potential for exports. Target of 50,000 units in FY11 (14,700 units in
FY10)
Slide no. 23IR meeting – June’2010
Indonesia – The emerging opportunity
Third largest market in the world with volumes over 6mn units p.a. TVS has a local assembly plant with a capacity of 0.3 mn units p.a. Launched TVS Neo , TVS Rockz and Apache in the Indonesian market
TVS King TVS Neo
TVS Neo
Slide no. 24IR meeting – June’2010
Awards in Indonesia
Slide no. 25IR meeting – June’2010
TVS Motor’s Standalone performance 2009-10
Rs Cr
Slide no. 26IR meeting – June’2010
Summary Long term growth prospects for the industry are attractive
TVSM poised to grow Strong innovation and faster upgrades Strong brands that resonate with their customers Exports will be a significant growth engine Entry into three wheeler has enhanced product portfolio
Significantly improved/ superior product quality
New products across segments, will strengthen TVS’ presence and lead to market share gains
Improved product mix likely to increase realizations and profitability
Focused efforts to reduce cost will improve profitability Strong free-cash flow expected
Slide no. 27IR meeting – June’2010
No part of this presentation is to be circulated, quoted, or reproduced for any distribution without prior written approval from TVS Motor Company Limited, PB 4, Harita, Hosur-635109, Tamilnadu, India. Certain parts of this presentation describing estimates and future plans may be “forward looking statements” within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied. This material is not a complete record of the discussion.
Thank you