MARUTI SUZUKI INDIA LIMITED

March, 2009

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 Suzuki 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 Suzuki takes no responsibility as to their accuracy or that the company subscribes to those findings.
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Agenda
About Maruti Suzuki The year so far Way forward Maruti Suzuki

About Maruti Suzuki

Company at a glance
Equity Structure Turnover Net Profit Sales Market Share Manpower Models 54.21% Suzuki, 45.79% with FIs, Public Rs. 188.2 bn Rs. 17.3 bn 764,842 cars
FY 08 FY 08 FY 08

54% (Passenger Cars including Van type vehicles) Over 7720 employees in 4 plants 12 brands with over 100 variants

Our Facilities
Gurgaon Facility: 300 acres, capacity 700,000 cars/ annum
Assembly plants 1,2,3 & Engine plants F, G and new K series

Manesar Facility: 600 acres, capacity 300,000 cars/ annum

Assembly plant 4

Diesel Engine plant, SPIL: JV SMC & MSIL, 200,000 units/ annum Suppliers Park: 100 acres Total Capacity: One Million

Product Portfolio

A1< 3400mm (also in LPG) 796cc

A2 (3401-4000mm) 796 cc

A2 (3401-4000 mm) 1061cc

A2 (3401-4000 mm) 1061cc, in LPG also

A2 (3401-4000 mm) 1298 cc in Petrol 1248cc in Diesel

A2 (3401-4000 mm) 998cc

A3 (4001-4500mm)-1290cc in Petrol & 1248cc in Diesel

A3 (4001-4500 mm)1598cc

SUV segment 4 Wheel: 2 litr

SUV segment 4 Wheel: 1300cc

C-segment- Van Type 800 cc

8 C-segment- Van Type 1300 cc

Share of Segments in the Industry

90%

78%
80% 70% 60% 50% 40% 30%

76%

77%

79%

78%

17%
20% 1 0% 0%

19%

20%

17%

18%

3%
2003-04

4%
2004-05

3%
2005-06

4%
2006-07

4%
2007-08

A1+A2+C

A3

A4-A6
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Market Share over the years

2008-09 10M 2007-08 2006-07 2005-06 2004-05 2003-04 4 4.3 5.1 4.3 4.1 2.7
(In%)

12.1 12.9 15.9

19

54.9 54.7 54.6 55.1

15.4

16.8

15.9 16.6 16.4 16 14.29 17.08

54.5 55.06

Maruti

Hyundai

Tata

Honda
10

More than half the market for the past 20 years since 1986-87

Sales Network
700

Dealer Sales Force

3659 5150 6903 8805

14666 11770 600

14454 627

20000

600

10000

491 500

Dealer Sales Outlets: Urban and Rural Formats

375 325 312 393

413

-10000

400

-20000

300

280 243 182 197 227

Cities Covered

-30000

200

161

-40000

100 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 ( Jan)

-50000

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Service Network
2900 1900 2700

Service Outets

2628

2673

2500

1700

2300

1500

2100

Cities Covered
1920 1220 1264
1300

1900

1100 1700

1001
900

1500

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09 (Jan)

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Customer Satisfaction
JD Power Assessment

For 9 years Maruti Suzuki has been the only player above industry average

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Pre-owned car business

Helps in exchange sales Enhances residual value thereby reducing cost of ownership Network : 304 True Value Dealers in 179 cities 83,107 units new cars sold through exchange in 10 months FY09.

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Technology at Maruti Suzuki

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Eight new models in 40 months

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Next Generation: KB Engine Technology

1 litre All Aluminium engine 67ps / 90nm Euro-5 compliant A-star & Splash Fuel Efficiency- 19.59km/l on Astar Improved NVH (Noise, Vibration & Harshness)

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Diesel technology
Swift & DZire, Splash shortly 1.3L - 75 bhp - 190 Nm torque 5 Step Multi Injection Common Rail Good NVH, not usually associated with diesel cars. 21 km/l in Swift & DZire

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Maruti Suzuki R&D evolution

Phase 1 Localisation Phase 2 Facelift capability Phase 3 Collaborative design Phase 4 Full Body Design

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Financial Performance
20000 18000 1 7 ,3 0 8 16000 14000 145,922 1 5 ,6 2 0 120,034 109,108 1 1 ,8 9 1 90,812 72,535 8 ,5 4 0 PAT Net Sales 178,603 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 -0 4 -0 5 -0 6 -0 7 04 05 06 07 03 -0 8

R s M illio n s

12000 10000 8000 70,677 6000 4000 1 ,0 5 0 2000 0

01

-0 2

02

-0 3

1 ,4 6 0

5 ,4 2 0

20

20

20

20

20

20

20

20

R s M illio n s

Financial Performance
16.6% 17.1% 17.7% 17.5%

EBITDA

15.2%

10.1% 8.2% 6.0% 7.8%

9.9%

10.7% 9.7%

PAT

1.5%

2.1%

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08
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The year so far

Challenges faced this year How are things changing What can we say about the next year

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Industry Growth-Passenger Cars

Quarterly Industry Growth08-09
15.0% 10.0% 5.0%
growth

11.6%

0.0% -5.0% -10.0% -15.0% Quarter1 Quarter 2

Quarter

-1.2% -12.7%
Quarter 3

-24.3%

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Challenges faced this year

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Inflation
Rising Inflation
14.00 12.00 10.00 Rate 8.00 6.00 4.00 2.00 0.00 Aug- Sep- Oct07 07 07 Nov- Dec- Jan07 07 08 Feb08 Period Mar08 Apr08 May08 Jun08 Jul08 Aug08
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Interest Rate
Interest Rate & CRR
16.00% 14.00% 12.00% Rate 10.00% 8.00% 6.00% 4.00%
06 -0 7 FY H 1 06 -0 7 FY H 2 07 -0 8 FY H 1 07 -0 8 FY H 2 08 -0 9 Q 1 Ju l'0 8 Au g' 08 Se pt '0 8

Cust Interest Rate CRR

FY

Period

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Equity Markets
Swinging Sensex
20,000 18,000 16,000 14,000
Index

12,000 10,000 8,000 6,000 4,000 2,000 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09
Period
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Crude

Crude at its Peak 140 130 120 110 100 90 80 70 60 50 July07 Aug Sept- Oct-07 Novust-07 07 07 Dec- Jan-08 Feb- March- April07 08 08 08
Period

Price/Barell

Oil Price/barell

May08

June08

July08

Aug ust-08

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Cascading effect
News from the west -Lehman Brothers -Bear Stearns -AIG Sub prime crisis snowballs. Job cuts in US Melt down became talk of the town
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Consumer Sentiment
Depressed market sentiment not the best time to buy lets wait & watch

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Finance Availability
Banking system confidence Money Supply

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Finance Penetration
70% 60% 50% 40% 30% 20% 10% Apr-08 May- Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 08 PSU Banks Pvt Banks Total

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The final blow

Quarter 3 November- Industry Shrinks -21.2% November -26/11- Mumbai Terror attack It seems everything that could go wrong went wrong this year

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The positives .
Proactive Government Industry responds through discounts and price cuts Inflation recedes Government opens money supply On Govt. push, PSU banks start lending freely ( Pvt banks still averse) Interest rates soften 200-300 bps Consumer sentiment improves ( starting with bargain hunters in Dec.)
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Calibrated view of Indian Economy

12 10 8 6 4 2 0 -2 USA Euro Zone France Germany Italy Spain UK Japan China India

2006

2007

2008

2009

India is set to grow by about 7% next year estimates 5.5 -6 %

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Financial Highlights 9M- Apr-Dec

Parameters Net Sales (Rs Mn) EBITDA (Rs Mn) Depreciation (Rs Mn) Profit Before Tax (Rs Mn) Profit After Tax (Rs Mn) 9M FY09 9M FY08 140,499 130, 974 18,787 *5094 13,272 9755 23,682 2507 20,677 14331 -35.8 % -31.9 % Change 7.3 % -20.7 %

* Pursuant to revision in useful life of assets in Q4 Fy08

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Financial Highlights 9M (08-09)

As % of Net Sales

Parameter Material Cost Employee Cost Selling & Distribution expenses Manufacturing Expenses Royalty Power & Fuel EBITDA Depreciation PBT PAT

9MFy09 79.4% 2.4% 3.8% 2.7% 3.3% 1.1% 13.4% 3.6%* 9.4% 6.9%

9M Fy08 76.4% 2.% 2.8% 2.2% 2.6% 0.8% 18.1% 2% 15.8% 10.9%

Change 3.1% 0.4% 1% 0.05% 0.7% 0.30% (4.8)% (1.6)% (6.3)% (4)%
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* Pursuant to revision in useful life of assets in Q4 Fy08

Cost drivers
Commodities Forex Sales discounts

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Commodities
70 60 50 Rs./Kg 40 30 20 10 0
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

46

48

52

54

56

59

56

500

51 45 47 41 46
Rs./Kg

400 300 200 100 0

346

386 393 393 401 366 356 274

34

37

38

39

41

42

43

44

43

39

177 186 141 147 144 128 130 133 129 132 115 109 99

212

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Steel CRC EDD

Steel CR-IH

Aluminium

Copper

16000 14000 12000

1 045 2 1 829 1

1 368 3 1 21 2 7

1 1 0 3 0

8695

10000 R ./G s m 8000 6000

3 76 1 6440

4000 2000 0
Mar Apr May J un J ul Aug Sep Oc t

221 1 61 8 9 1 5 78

Nov

Dec

J an

Rhodium

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Forex Exposure Direct : Import of components, Steel , Royalty payments ~ 12 % of Net Sales Indirect : vendor imports ~ 10 % of Net Sales

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Way forward for Maruti Suzuki

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Industry Outlook
No guidance intended Best perception about domestic market growth in FY10 at 5 %

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Way forward Maruti Suzuki

Products Exports Domestic market opportunities Commodity R&D Forex Commitment to Road Safety in India
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Way forward Maruti Suzuki

Products
Full year volumes of A-star
(powered by next generation light weight KB engine, mileage 19.6 km/l, ELV compliant and lowest emissions in its category)

Suzuki World Strategic ModelSplash

(KB engine, Petrol & Diesel variant )

Increased availability of diesel engines

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Way forward Maruti Suzuki

Exports New product- new markets (A- star) World class port infrastructure, more efficient logistics

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Our first shipment of A-star to Europe at our new terminal at Mundra

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Way forward Maruti Suzuki

Domestic market opportunities Potential consumer segments
Rural Sector (~8% of our sales) Government Employees (~15% of our sales)

Enhanced Customer Interface - Brand Centers & Stockyards

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Way forward Maruti Suzuki

On Cost side Commodities softening Extensive work on Tier-II vendor upgradation

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Way forward Maruti Suzuki

On R&D
Investment in R&D capability full stream Over 80 engineers trained in Japan Full body change capability in 2010 Transforming models for new engines Speed, relevance and excitement in market place R&D centre at par with Japan Complete Test Course facility

1000

687

430 238 269

2005-06

2006-07

2007-08

2008-09 (Jan)

2010-11e

Design Engineers Strength at Maruti Suzuki

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Way forward Maruti Suzuki

On Forex Forex almost neutral, but with cross-currency Vendor localization

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Way Forward - Capital Expenditure

Vehicle Production Capacity of 1 million achieved Manesar Plant Capex done Going forward Capex major areas oKB Engine Expansion, oGurgaon plant modernization oR&D oMarketing Brand Centres & StockYards oNew Model development Total Plan oFY10 Rs 24 billion oFY11 Rs 13 billion oFY12 Rs 4 billion Cash Position Rs 32 billion (31st Dec-08)

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Our commitment to Road Safety in India

India is Worlds No.1 in road accident fatalities 78% accidents due to driver fault Train 500,000 in next 3 years towards Safe Driving 100,000 sponsored by MSIL from weaker sections Partnership with State governments & Dealerships.
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Road Safety Infrastructure

Two Institutes of Driving Training and Research (IDTR)
Train 500,000 in next 3 years towards `Safe Driving

In partnership with State Governments. Pilot in March 2000 Second IDTR in 2006 Four more in the pipeline Gujarat, Haryana(2), Uttarakhand Over 550,000 commercial drivers trained in Delhi & NCR

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Thank You

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