Secondary Pres On MUL

MARUTI SUZUKI INDIA LTD.
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Indian Auto Industry: An Overview

• Domestic sales of over 1.2 million passenger cars in FY’07
(5 Yrs CAGR of over 15%)
• Liberalized regime
Almost all major international auto companies present
• Car Market composition
Predominantly a compact car market (A1 + A2 ~ 70%)
Rest of the market is fragmented
• Low Car Penetration
8 cars per 1000 Population
Industry Capacity building up to 4.25 Mn units by 2010-11
(Source: NCAER, Industry research & announcements by auto companies)

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Evolution of Indian Industry
Maruti instrumental in the Growth of Indian Passenger Car

Industry
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Growth Drivers
Economy
7.6% GDP CAGR in past 5 yrs
9.2 % GDP growth for 2006-07
Increasing role of Tertiary & Secondary Sector
Duty Structure
- Reduction in Excise Duties from 40% to 24% (16% for compact car)
-Reduction in import duty on Auto components
Infrastructure
- Rs 500 Billion for Golden Quadrilateral & North East South West corridor
- Rs. 900 Billion for widening of National highways
- Rs 300 Billion for city roads
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Growth Drivers
Rising Middle Class
- Families above Rs 200K to grow from 5% to 19% by 2015
- Multi Earner Families
- 42% population below 20yrs
- Only 7% above 60 yrs
Finance
- Fall in rates from 26% to ~11% in last 10 yrs
- Increase in Finance availability
- Reach to smaller towns
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Company Preview
Estd. in 1981 - JV between Suzuki Motors & Govt. of India
– Currently Suzuki – 54.2%; Free float – over 45%
Largest passenger car Company in India since last two decades
– Captures over half of Indian car market
– Produced more than 6.6 million cars in India
– 11 Models in more than 150 variants
– Turnover of $ 3.37 Bn with ~ 6700 employees
Strong Vendor base
– High Localization levels
Suzuki’s largest manufacturing facility outside Japan

– 3 plants in Gurgaon and 1 plant in Manesar (in Haryana near Delhi)
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Domestic Car Market

Sales Units FY’07 FY’06 Change (%)
(Vol ’000) (Vol ’000)
Maruti 632 522 21%

Industry 1,159 948 22%
Sales Units H1 (FY08) H1 (FY07) Change (%)

(Vol ’000) (Vol ’000)
Maruti 335 285 18%

Industry 614 541 14%
*Source: SIAM, Passenger cars and Van Type Vehicles
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Share of Segment in the Industry

Segm ent Share in T otal Indus try Sales
70%
6 5% 6 5%
60% 60%
56 %
50% 49%
40%
30%
22%
20% 19 % 20%
17% 17% 18 %
13 %
9% 7%
10% 7%
8% 7% 7% 7% 6%
3% 4% 3% 4% 4%
0%
2003-04 2004-05 2005-06 2006-07 H1 2007-08
A1 A2 A3 A4-A6 C
Compact cars - A1 and A2 have major contribution in total car sales in India.
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Market Share over the years
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Financials: Trend over the years

25000 250000
198,480
20000 171,442 200000
147,043
19,322
132,910
15000 150000
Rs Millions
Rs Millions
110,200
15,620
90,810 90,630
10000 100000
11,891
5000 8,540 50000
5,420
1,050
1,460
0 0
PAT Turnover
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Business Performance
15.2% 17.7%
16.0% 17.1%
16.6%
12.0% 10.1%
8.2%
10.7%
8.0% 9.9%
7.8%
4.0% 6.0%
1.5% 2.1%
0.0%
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
EBITDA PAT
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Financial Performance FY’07

Rs. Million FY’07 FY’06 Growth
Net Sales (Rs Mn) 145,922 120,034 21.6%
PBT (Rs Mn) 22,798 17,500 30.3%
PBT Margin 15.6% 14.6% 100 bps
Avg. Net Worth (Rs Mn) 62,291 49,157 26.7%
ROCE 35.3% 34.7% 60 bps
PAT (Rs Mn) 15,260 11,891 31.4%
EPS (Rs) 54.1 41.2 31.3%
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Key Financial Ratios H1 (FY’08) vs H1 (FY’07)
Particulars H1 FY’08 H1 FY’07 Increase (%)

Average Net Worth (Rs Mn) 73,369 58,209 26.0
ROCE 35.6% 36.4 % (0.8)%
Material cost to Net Sales 76.1 % 75.5% 0.6%
Employee cost to Net Sales 2.0 % 2.1% (0.1)%
Manufacturing & Admin
Expenses to Net Sales 5.5% 5.3% 0.2%
Selling and Distribution
Expenses to Net Sales 2.9% 3.4% (0.5)%
EPS (Annualized) in Rs/share 66.8 51.0 31%
EBDITA / Net Sales 18.76% 18.38% 0.38%
PBT / Net Sales 16.40% 16.38% 0.02%
PAT/ Net Sales 11.44% 11.31% 0.13%
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Our Strengths
1. Superior value proposition
– Cost of Ownership
– Higher Residual value and easier disposal of vehicles
2. Largest Distribution and Service Network in India

– 400 showrooms covering 229 cities
– 150 rural format sales outlets in 143 cities
– 620 dealer service stations &1900 Maruti Authorized Service
Stations
– Over 1190 cities covered by Service Network
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Our Strengths
3. Dealer confidence in MUL business model
– Majority of new showrooms & workshops coming from existing
dealers
4. Strong Product Portfolio

– Widest product range in India
– Majority of new showrooms & workshops coming from existing
dealers
– Present in Gasoline, Diesel and LPG
– 6 models launched in last 30 months
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Our Strengths
5. Decentralized Operations for focused approach
Divided the country into 4 Zones >>16 Regional Offices & 15 Area offices
Zone to be headed by a Commercial Biz Head (CBH)
6. Initiatives for market expansion

Tapping the Huge 2-wheeler owners
Special Schemes Targeting select group/profession
Repositioned Alto as an entry level Alternative
Finance availability in remote locations through Regional Rural
Banks
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Our Strengths
8. Life Cycle Association
Pre-owned cars initiative – over 240 outlets in 150 cities;
Maruti-SBI alliance – Strategy to expand the market
Hassle Free Insurance- Penetration over 85%
Extended warranty- Penetration of ~50%
Maruti Driving School – Already 18500 drivers trained
Auto Card - Loyalty card to over tap 5 million customers

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New Launches
Launched ‘SWIFT’ in May 2005
– Simultaneous launches across the globe
– New European Styling
– Significant role by Indian R&D
Launched ‘SX4’ in May 2007

The bold new car in A3 segment
Change from a Compact Car to
a Complete Car Manufacturer
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Our Expansion
Investment of $ 2.25 Bn by FY 2010
– Manesar ($ 625 Mn) to increase capacity to 300K cars
– Diesel Engine Plant ($ 625 Mn) to increase capacity to 300K
units
– Setting up New Engine Plant & Gurgaon facilities upgradation
($ 1,000 Mn)
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Looking Forward
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Suzuki’s Global Plans

Compact car to complete car manufacturer
European styling
World strategic models
5th World strategic model from India
1/3 global Suzuki sales from India (Maruti) by 2009
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Announcements by Osamu Suzuki

Greater role of Indian managers in steering the company
New R&D facilities of the same level as Suzuki Japan
Additional Investments
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THANK YOU
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Secondary Pres On MUL

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Secondary Pres On MUL

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MARUTI SUZUKI INDIA LTD.

Indian Auto Industry: An Overview

• Car Market composition

Predominantly a compact car market (A1 + A2 ~ 70%)

Rest of the market is fragmented

• Low Car Penetration

8 cars per 1000 Population

Industry Capacity building up to 4.25 Mn units by 2010-11

(Source: NCAER, Industry research & announcements by auto companies)

Evolution of Indian Industry

Maruti instrumental in the Growth of Indian Passenger Car

Suzuki’s largest manufacturing facility outside Japan

Domestic Car Market

Maruti 632 522 21%

Sales Units H1 (FY08) H1 (FY07) Change (%)

Maruti 335 285 18%

*Source: SIAM, Passenger cars and Van Type Vehicles

Share of Segment in the Industry

Market Share over the years

Financials: Trend over the years

Financial Performance FY’07

Net Sales (Rs Mn) 145,922 120,034 21.6%

PBT (Rs Mn) 22,798 17,500 30.3%

PBT Margin 15.6% 14.6% 100 bps

Avg. Net Worth (Rs Mn) 62,291 49,157 26.7%

ROCE 35.3% 34.7% 60 bps

PAT (Rs Mn) 15,260 11,891 31.4%

EPS (Rs) 54.1 41.2 31.3%

Key Financial Ratios H1 (FY’08) vs H1 (FY’07)

Particulars H1 FY’08 H1 FY’07 Increase (%)

2. Largest Distribution and Service Network in India

4. Strong Product Portfolio

6. Initiatives for market expansion

Pre-owned cars initiative – over 240 outlets in 150 cities;

Maruti-SBI alliance – Strategy to expand the market

Hassle Free Insurance- Penetration over 85%

Extended warranty- Penetration of ~50%

Maruti Driving School – Already 18500 drivers trained

Auto Card - Loyalty card to over tap 5 million customers

Launched ‘SX4’ in May 2007

– Manesar ($ 625 Mn) to increase capacity to 300K cars

– Diesel Engine Plant ($ 625 Mn) to increase capacity to 300K

– Setting up New Engine Plant & Gurgaon facilities upgradation

Suzuki’s Global Plans

World strategic models

5th World strategic model from India

1/3 global Suzuki sales from India (Maruti) by 2009

Announcements by Osamu Suzuki

New R&D facilities of the same level as Suzuki Japan

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