International Business

1st August 2009

Top Line Performance

618345 633463 772519 139056

196716

482030 130949 29691

2001-02

14619

44310

2002-03

2003-04

2004-05 2W

65767

2005-06 3W TTL

2006-07

2007-08

136315

2008-09

Category 2 W (in units) 3 W (in units) Total (in units) Sales in Rs Mn

2007-08 482,030 136,315 618,345 20,870

2008-09 633,463 139,056 772,519 26,152

% variance 31% 2% 25% 25%

Geographic Spread
FY 09 - TOTAL 772.5
Category Key countries Sri Lanka Bangladesh M.S. 73% 39% 36% 41% 22% 19% 64% 40% 4% 93% 100% 72% 100% 70%

S E Asia, 85, 11% MS 13%

Philippines

Africa & ME, 325.7, 43% MS 9%

Colombia 2 - Wheeler Central America Nigeria Uganda Angola

South Asia, 212, 27% MS 51% L A, 149, 19% MS 14%

3 -Wheeler

Iran Sri Lanka Bangladesh Nigeria Egypt Peru

* Mentioned MS of 2W. In reached markets * VOL in Thousands

Business Environment

Demand contraction
Key markets are showing decline in the range of -10% to -40%
Economic slowdown Withdrawal of financing

Buyer has become cautious better appreciation of quality

Chinese Influence weaker

Window of opportunity in Low Priced Entry Level segment China based Japanese will become a bigger threat

US Dollar troubles
Poor availability has caused trade difficulties Devaluation in most key markets in the range of -5% to -30% Significant improvement in Profitability

International Business Approach

Improve business profitability while maintaining volume and share
Drive topline through Africa Retain most of exchange rate benefits

Strengthen dealer network and customer interface

Sales and After Sales network Brand visibility Deeper market understanding

New Markets
Establish routes to smaller geographies ( low entry barriers) 3 Wheeler Concept & Business Development Prepare Larger Geographies

Indonesia Sustainability

PT BAI Indonesia Update

Decline in business environment

Devaluation, restrictions on financing, economic contraction Motorcycles market performance in H1 2009 : -12% PT BAI : 08-09 : Sales doubled but PBT : - Rs 610 Mn

Stay with Strategy

Focus on motorcycles Sharp portfolio Differentiate and build brand Pulsar & DTSi Steadily expand and improve reach Shift from SKD to CKD status

Aim to break even at contribution level

Retail Trends

Retail Trends
Total 3W

12,065 11,868 10,31710,218 10,370 10,351 10,193 10,218 10,145 10,313 10,074 10,245 8,971 8,377 7,407 10,255 9,387 7,576

9,420

9,586

9,747

9,435

Jun'08 Jul

Aug

Sep

Oct

Nov

Dec Jan'09 Feb

Mar

Apr

May

Jun

FY09 TTL 3W

FY09 Mvg Avg

Outlook & Risks

Actual 08-09 Outlook 09-10

Category

% variance

2 Wheelers

633,463

651,320

3%

3 Wheelers

139,056

151,342

9%

Total Vehicles

772,519

802,662

4%

Sales in Rs. Mn

26,152

30,707

17%

Key Risks Access to USD for Global Trade Demand should hold steady at these levels, but Latin America is soft Pace of 3 Wheeler development/revival

Thank You