MARUTI SUZUKI INDIA LIMITED

CORPORATE PRESENTATION

10th CLSA India Forum

15th October 2007

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 Safe Harbour
This presentation might contain forward looking
statements which involve a number of risks, uncertainties
and other factors that could cause the actual results to
differ materially from those in the forward looking
statements. Maruti undertakes no obligation to update
these to reflect the events or circumstances thereof.

This presentation also contains reference to the findings of

various reports available in the public domain. Maruti
takes no responsibility as to their accuracy or that the
company subscribes to those findings.

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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

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(Source: NCAER, Industry research & announcements by auto companies)
 Growth Drivers
Economy Duty Structure
7.6% GDP CAGR in past 5 yrs - - Reduction in Excise Duties from 40% to
9.2 % GDP growth for 2006-07 - 24% (16% for compact car)
Increasing role of Tertiary & Secondary Sector - - Reduction in import duty on Auto
components

Product Availability Infrastructure

Number of basic models increased – •Rs 500 Billion for Golden Quadrilateral &
from 17 in 1999 to 40+ in 2006 North East South West corridor
•Rs. 900 Billion for widening of National
highways
•Rs 300 Billion for city roads

Rising Middle Class Finance

Families above Rs 200K to grow from 5% to - Fall in rates from 26% to ~11% in last
19% by 2015- 10 yrs
Multi Earner Families - - Increase in Finance availability
42% population below 20yrs – - Reach to smaller towns
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Only 7% above 60 yrs -
 MARUTI SUZUKI INDIA : A 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) 5
 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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 Evolution of Indian Industry

1,400,000

1,200,000

1,000,000

800,000
Volumes

OTHERS
600,000

400,000

200,000 MARUTI

-
1970-71 1975-76 1980-81 1985-86 1990-91 1995-96 2000-01 2005-06

Maruti instrumental in the Growth of Indian Passenger Car

Industry
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 Share of Segment in the Industry
Segment Share in Total Industry 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
(In%)
4.5
H1 2007-08 13.5
16
54.8
5.1
15.4
2006-07 16.8
54.6
4.31 15.92
2005-06 16.62
55.09
4.05 16.38
2004-05 16.01
54.48
2.7 14.29
2003-04 17.08
55.06

Maruti Hyundai Tata Honda

More than Half of Market share from past 20 years since 1986-87 9
 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
8,540
5000 50000
5,420
1,050

1,460

0 0

PAT Turnover
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* H1 extrapolated for FY’08 (no guidance intended)
 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
7. Productivity and Cost efficiency
(1) In Manufacturing Operations
110
100 100 100 100 100

82
Indexed to FY'02

48

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Plant Manpower Hrs/Veh Inhouse Warranty Inhouse Rejection Direct Pass

2001-02 2006-07

(2) In Materials Engineering

90.8% in FY’01 75.7% in FY’07 17
 Our Strengths
8. Life Cycle Association
Pre-owned cars initiative – over 240 outlets in 150 cities;

Maruti playing the role of an aggregator

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

AutoCard - Loyalty card to over tap 5 million customers 18

 Turning a New Leaf

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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 Recognition
J D Power Customer Satisfaction #1 Eight times in a row

J D Power Sales Satisfaction #1 for 3 consecutive years 2003-04, 2004-05 and

2005-06

J D Power APEAL study 2006 - #1 in compact (WagonR) and entry mid-sized

segments (Esteem), since last 3 years

TNS Total Customer Satisfaction #1 in four segments

Forbes magazine report on world’s Most Reputed companies ranks Maruti at #5

among all automobile companies in the World.

The Nikkei Monozukuri Award 2007 to Manesar plant for best overseas plant by
any Japanese company.

Golden Peacock Award for excellence in Environment Management in

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Manufacturing Sector
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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 Additional Investments
R&D
Design and development capability
Test Course and other facilities

Marketing & Customer Interface

Display areas for cars
Regional vehicle stock yards
Spares depots

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 Open House

www.marutisuzuki.com

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