"Hero is growing, grow with Hero."

Board of directors & Board of directors & their Remunerationtheir Remuneration

Chairman: Dr. Brij Mohan Lal MunjalChairman: Dr. Brij Mohan Lal Munjal

Remuneration : 15,76,24,178Remuneration : 15,76,24,178

M.D & CEO :Mr. Pawan MunjalM.D & CEO :Mr. Pawan Munjal

Remuneration: 15,73,57,492Remuneration: 15,73,57,492

Director : Pradeep DinodiaDirector : Pradeep Dinodia

Jt. M.D : Mr. Toshiaki NakagawaJt. M.D : Mr. Toshiaki Nakagawa

Remuneration : 15,12,54,869Remuneration : 15,12,54,869

originorigin The joint venture between India's Hero Group and Honda Motor The joint venture between India's Hero Group and Honda Motor

Company, Japan has created the world's single largest two wheeler Company, Japan has created the world's single largest two wheeler company. During the 80s, Hero Honda became the first company in company. During the 80s, Hero Honda became the first company in India to prove that it was possible to drive a vehicle without polluting India to prove that it was possible to drive a vehicle without polluting the roads.the roads.

The success of the Hero Group lies in the determination and foresight The success of the Hero Group lies in the determination and foresight of the Munjal brothers, who shared their vision with their workers and of the Munjal brothers, who shared their vision with their workers and led the Group to a position where its name has become synonymous led the Group to a position where its name has become synonymous with top-quality two wheelers. with top-quality two wheelers.

The flame kindled by the Munjal brothers in 1956 with the flagship The flame kindled by the Munjal brothers in 1956 with the flagship company Hero Cycles; Mr. Satyanand Munjal, Mr. Brijmohan Lall company Hero Cycles; Mr. Satyanand Munjal, Mr. Brijmohan Lall Munjal and Mr. O. P. Munjal continue to carry the torch and are Munjal and Mr. O. P. Munjal continue to carry the torch and are actively involved in the day-to-day operations of the Hero Group. actively involved in the day-to-day operations of the Hero Group.

The philosophy with regard to labour management is The philosophy with regard to labour management is "Hero is "Hero is growing, grow with Hero."growing, grow with Hero."

FACTSFACTS 19561956Hero Cycles Limited is established. Hero Cycles Limited is established. 19841984Hero Honda Motors Limited established in joint venture with Hero Honda Motors Limited established in joint venture with

Honda Motors of Japan, to manufacture motorcycles.Honda Motors of Japan, to manufacture motorcycles. 19851985The 100 cc Hero Honda Motorcycle arrived and by 1988 was The 100 cc Hero Honda Motorcycle arrived and by 1988 was

the No. 1 among all motorcycles in India.the No. 1 among all motorcycles in India. 19911991Hero Honda receives National Productivity Council's Award.Hero Honda receives National Productivity Council's Award.

19911991Hero Honda receives the Economic Times - Harvard Business Hero Honda receives the Economic Times - Harvard Business School Association Award against 200 contenders.School Association Award against 200 contenders.

20042004Hero Honda continues as the World's largest manufacturer of Hero Honda continues as the World's largest manufacturer of two-wheelers with annual sales volume of 2.07 million two-wheelers with annual sales volume of 2.07 million motorcycles and a market share of48%.motorcycles and a market share of48%.

20062006Hero Honda enters the scooter segment, launches 100cc Hero Honda enters the scooter segment, launches 100cc "Pleasure""Pleasure"20062006Hero Honda crosses a unit sales threshold of 3.0 million Hero Honda crosses a unit sales threshold of 3.0 million motorcycles motorcycles

FACTS cont…FACTS cont…

Hero Honda Motors was ranked 3rdHero Honda Motors was ranked 3rd amongst top Indian amongst top Indian companies Review 2000 - Asia's leading companies award (2004) companies Review 2000 - Asia's leading companies award (2004) by Far Eastern Economic Review.by Far Eastern Economic Review.

Hero Honda Motors is the Hero Honda Motors is the World's largest manufacturer of two-World's largest manufacturer of two-wheelerswheelers with annual sales volume of over 3.0 million motorcycles. with annual sales volume of over 3.0 million motorcycles.

Hero Honda Motors has been awarded the highest rating for Hero Honda Motors has been awarded the highest rating for Corporate Governance (2003) by CRISIL - India's Leading Ratings, Corporate Governance (2003) by CRISIL - India's Leading Ratings, Risk & Advisory Company and as the Best Governed Company in Risk & Advisory Company and as the Best Governed Company in private sector(Dec 2004).private sector(Dec 2004).

Hero Honda ranked Number One in the two-wheeler category on Hero Honda ranked Number One in the two-wheeler category on Environmental PerformanceEnvironmental Performance by the Centre for Science and by the Centre for Science and Environment.Environment.

Hero Honda is also hosts two successful entertainment shows Hero Honda is also hosts two successful entertainment shows HERO HONDA SA RE GA MA PAHERO HONDA SA RE GA MA PA and and MTV HERO HONDA MTV HERO HONDA ROADIESROADIES..

REGISTERED & CORPORATE REGISTERED & CORPORATE OFFICEOFFICE

REGISTERED DETAILS:REGISTERED DETAILS: Registration no: 17354Registration no: 17354 State Code: 55State Code: 55 Item code : 87112003Item code : 87112003 CORPORATE OFFICE:CORPORATE OFFICE:

HERO HONDA MOTORS LIMITEDHERO HONDA MOTORS LIMITED   34, Community Centre, Basant Lok, Vasant Vihar,    34, Community Centre, Basant Lok, Vasant Vihar, New Delhi - 110057, India.New Delhi - 110057, India.Tel:Tel:  +91-11-26142451, 26144121  +91-11-26142451, 26144121    Fax:   Fax: +91-11-26143321, 26143198  +91-11-26143321, 26143198 

  PLANTSPLANTS      

HARIDWARHARIDWAR   Plot No.3, Sector-10, Ranipur IIE-SIDCUL, Haridwar - 248001   Plot No.3, Sector-10, Ranipur IIE-SIDCUL, Haridwar - 248001 Tel:Tel: +91-01334-238500 +91-01334-238500    Fax:   Fax: +91-01334-239512 +91-01334-239512

        DHARUHERADHARUHERA   69 Km. Stone, Delhi-Jaipur Highway,   69 Km. Stone, Delhi-Jaipur Highway, Dharuhera -122 100, Dist. Rewari (Haryana), India. Dharuhera -122 100, Dist. Rewari (Haryana), India. Tel:Tel: +91-1274-267011-15, 01274-267030-33 +91-1274-267011-15, 01274-267030-33    Fax:   Fax: +91-1274-267025   +91-1274-267025       GURGAONGURGAON   37 Km. Stone, Delhi-Jaipur Highway,   37 Km. Stone, Delhi-Jaipur Highway, Sector-33, Gurgaon -122 001(Haryana), India. Sector-33, Gurgaon -122 001(Haryana), India. Tel:Tel: +91-124-2372123-34 +91-124-2372123-34    Fax:   Fax: +91-124-2373141-42 +91-124-2373141-42

Financial ResultsFinancial Results Financial Results for Q4, FY’08-09Financial Results for Q4, FY’08-09 Total sales for Q4 stands at 9,97,855 units, growth of 13 per cent, three Total sales for Q4 stands at 9,97,855 units, growth of 13 per cent, three

times that of the industry growth during the period times that of the industry growth during the period Total turnover (Net Sales & Operating Income) Rs.3422.52 crores, growth Total turnover (Net Sales & Operating Income) Rs.3422.52 crores, growth

of 22.24 per cent of 22.24 per cent Net profit after tax at Rs 402.17 crores, growth of 34.64 per cent Net profit after tax at Rs 402.17 crores, growth of 34.64 per cent EBIDTA margin for the quarter 16.04 per cent EBIDTA margin for the quarter 16.04 per cent Financial Results for FY’09Financial Results for FY’09 Total unit sales of 37.22 lakh two-wheelers, growth of 12 per cent, more Total unit sales of 37.22 lakh two-wheelers, growth of 12 per cent, more

than double that of the industry growth during the period than double that of the industry growth during the period Total turnover (Net Sales & Operating Income) of Rs. 12356.88 crores Total turnover (Net Sales & Operating Income) of Rs. 12356.88 crores Net profit after tax at Rs. 1281.76 crores Net profit after tax at Rs. 1281.76 crores Dividend of 1000 per cent Dividend of 1000 per cent EBIDTA margin for the year 14.16 per cent EBIDTA margin for the year 14.16 per cent EPS of Rs. 64.19/- EPS of Rs. 64.19/-

Profit & loss a/cProfit & loss a/c(Amt in Crore)(Amt in Crore)Income Income 31.03.200831.03.2008 31.03.200731.03.2007Gross sales : 12,038.53 11,542.04Gross sales : 12,038.53 11,542.04

-Excise duty: -Excise duty: 1,706.73 1,706.73 1,642.081,642.08

Net sales : 10,331.80 9,899.96Net sales : 10,331.80 9,899.96

Other Income: Other Income: 185.42 185.42 189.85 189.85

Total Turn over:- Total Turn over:- 10,517.22 10,089.81 10,517.22 10,089.81

Expenditure:Expenditure:Man.&other exps.: 8,982.43 8,726.92Man.&other exps.: 8,982.43 8,726.92

Depreciation : 160.32 139.78Depreciation : 160.32 139.78

Interest (Net) Interest (Net) (35.81(35.81) ) (22.99)(22.99)

Total Expenditure:Total Expenditure: 9,106.949,106.94 8,843.718,843.71

Net profit: Net profit: 1,410.28 1,246.101,410.28 1,246.10

(Before tax)(Before tax)

-Prov. For taxation:-Prov. For taxation:

Current : 436.81 375.81Current : 436.81 375.81

Deferred : 1.20 9.42Deferred : 1.20 9.42

Fringe benefit: Fringe benefit: 4.39 4.39 2.98 2.98

ProfitProfit : : 967.88967.88 857.89857.89

(after tax)(after tax)

Balance sheetBalance sheet(Amt. In million)(Amt. In million)

Liability 2008 2007 Asset 2008 Liability 2008 2007 Asset 2008 20072007

Trade A/C Payable7,560.70 5,548.20 Trade A/C Payable7,560.70 5,548.20 Current Asset:Current Asset:Accrued Exp. 494.82 417.58 Cash & cash Accrued Exp. 494.82 417.58 Cash & cash Indian IT 63.90 38.50 equivalent: 1,310.92 357.82Indian IT 63.90 38.50 equivalent: 1,310.92 357.82Other C.L. 5,689.15 4,871.05 Trade A/C receivable 2,974.38 3,352.48Other C.L. 5,689.15 4,871.05 Trade A/C receivable 2,974.38 3,352.48L.T.D due in a yr L.T.D due in a yr 184.93 184.93 206.10 206.10 Inventories Inventories : : 3,171.04 2,755.84 3,171.04 2,755.84Total C.L. 13,993.50 11,081.43 Prepaid ExpensesTotal C.L. 13,993.50 11,081.43 Prepaid ExpensesDeferred IT 1,391.67 1,529.68 &.other C.A Deferred IT 1,391.67 1,529.68 &.other C.A 1,911.49 1,911.49 2,666.58 2,666.58 L.T.D. L.T.D. 1,135.67 1,135.67 1,445.67 1,445.67 Total current asset: Total current asset: 9,367.83 9,132.72 9,367.83 9,132.72Total liabilityTotal liability: : 16,520.24 16,520.24 14,056.71 14,056.71 Stock holders Equity: Stock holders Equity: Fixed Asset:Fixed Asset:Authorized 250,000,000(par value Rs .2) Invst. (held to Authorized 250,000,000(par value Rs .2) Invst. (held to O.S Share 199,687,500 maturity security 1,599.99 1,612.79O.S Share 199,687,500 maturity security 1,599.99 1,612.79(Rs. 2 / share) 399.38 399.38 Invst. In M.F 24,617.11 18,522.31(Rs. 2 / share) 399.38 399.38 Invst. In M.F 24,617.11 18,522.31Capital surplus 0.03 0.03 Invst. In affiliate at Capital surplus 0.03 0.03 Invst. In affiliate at Retained earning Retained earning 34,424.6134,424.61 28,465.20 28,465.20 Equity 264.58 252.42 Equity 264.58 252.42Total stock equityTotal stock equity: : 34,824.02 28,864.6134,824.02 28,864.61 Prop. Plant& Equipment Prop. Plant& Equipment 15,494.7515,494.75 13,401.08 13,401.08Total liabilityTotal liability: : 51,344.26 51,344.26 42,921.32 42,921.32 Total AssetTotal Asset: : 51,344.26 51,344.26 42,921.32 42,921.32

ConclusionConclusion

The Hero Group's phenomenal growth is the The Hero Group's phenomenal growth is the result of constant innovations, a close watch on result of constant innovations, a close watch on costs and the dynamic leadership of the Group costs and the dynamic leadership of the Group Chairman, characterized by an ethos of Chairman, characterized by an ethos of entrepreneurship, of right attitudes and building entrepreneurship, of right attitudes and building stronger relationships with investors, partners, stronger relationships with investors, partners, vendors and dealers and customers.vendors and dealers and customers.