#1BAJAJ Distinctly Ahead 1#2Pre-demerger Bajaj Auto Ltd. Auto Business Insurance Businesses Wind-farm Project Consumer Finance Investments and Cash BAJAJ Distinctly Ahead 2#330% Bajaj Auto Auto Business Indonesian subsidiary Cash and cash equivalents - Rs. 15 bn Post-demerger Bajaj Holdings and Investment ** 30% BAJAJ Distinctly Ahead Bajaj Finserv Life Insurance General Insurance Consumer Finance Distributor of Financial Products Cash and cash equivalents - Rs. 8 bn ** 30% stake in BAL & BFS, holding in MSL, ICICI and cash equivalents – Rs. 56 bn - 3#4BAJAJ Distinctly Ahead Status on De-merger ➤ Board Approval of Scheme ➤ Court convened meeting ➤ Court hearing ➤ Filing of Court order with ROC ➤ Listing of shares of BHIL : 17th May 2007 : 18th August 07 : October 07 : 20th February 08 : March 08 : Received ➤ Approval from SEBI ➤ Expected listing - BAL : 26th May 08 BFS : 26th May 08 +#5Bajaj Auto Ltd ( post de-merger) BAJAJ Distinctly Ahead 5#6SALES IN UNITS: TOTAL 2007-08 2006-07 GROWTH Q4 Total Q4 Total Q4 Total 100cc 224,030 986,232 291,057 1,438,323 125cc 152,364 686,389 104,326 450,845 150cc 103,511 467,158 140,462 490,331 Motorcycles 479,905 2,139,779 535,845 2,379,499 -10% -10% Total 2Wh's 482,912 2,161,095 543,757 2,399,996 3 Wh's 69,676 290,312 84,630 321,828 -18% -10% Total Units 552,588 2,451,407 628,387 2,721,824 -12% -10% BAJAJ Distinctly Ahead 6#7of which EXPORTS are 2007-08 2006-07 GROWTH Q4 Total Q4 Total Q4 Total 100cc 70,510 269,176 43,964 174,312 125cc 37,408 138,306 17,753 66,363 150cc Motorcycles Total 2Wh's 15,712 123,630 481,549 123,890 482,026 77,550 74,067 15,826 59,981 77,543 300,656 59% 60% 301,766 |3 Wh's 34,168 136,315 39,133 140,645 -13% -3% Total Units Rs. in billion 158,058 5.05 618,341 116,683 442,411 35% 40% 20.48 4.49 16.94 12% 21% BAJAJ Distinctly Ahead 7#8Financials - Standalone Rs. in billion BAJAJ Distinctly Ahead Particulars 9 Months Q4 Full Year Net Sales & operating Income 69.72 20.74 90.46 Other Income 1.02 0.21 1.23 Total Income Material Cost Employee cost Depreciation 70.74 20.95 91.69 50.96 15.24 66.20 2.56 0.86 3.42 1.33 0.41 1.74 Other expenses 6.05 2.09 8.14 Expenses capitalized (0.17) (0.06) (0.23) Total Expenses 60.73 18.54 79.27 Interest 0.03 0.02 0.05 Voluntary retirement scheme 0.51 0.51 1.02 Profit before tax 9.47 1.88 11.35 Provision for tax 3.12 0.67 3.79 Profit after tax 6.35 1.21 7.56 EPS (weighted average) 54.2 Dividend (45% payout ratio) 200% 8#9Empty#10Overview on Investments Cost Market Value Subsidiaries ✓ PTBAI 0.57 0.57 * ✓ Bajaj Auto International Holdings BV 5.69 5.69 * ✓ Other equities .01 .01 * * Sub-total ... 6.27 6.27 Fixed Income 12.30 12.57 Total ... 18.57 18.84 * At book value since not quoted All values in INR billion unless specified otherwise BAJAJ Distinctly Ahead 10#11Financials - Operating BAJAJ Distinctly Ahead 2007-08 2006-07 * Rs. in billion 9M Q4 Full Year Q4 Full Year Total Opg Income 69.72 20.74 90.46 23.13 95.20 Material Cost 50.80 15.17 65.97 16.78 68.69 % 72.9 73.1 72.9 72.4 72.1 Employee Cost 2.55 0.87 3.42 0.69 3.02 % 3.7 4.2 3.8 3.0 3.2 Selling & after sales 3.31 1.05 4.36 1.08 5.23 % 4.7 5.1 4.8 4.7 5.5 Other expenses 2.74 1.04 3.78 1.24 3.96 % 3.9 5.0 4.1 5.4 4.2 Total Expenditure 59.40 18.13 77.53 19.79 80.90 EBITDA 10.32 2.61 12.93 3.34 14.30 % 14.8 12.6 14.3 14.5 15.0 VRS & DEPB reversal 0.51 0.51 1.02 0.12 0.49 Revised EBITDA 9.81 2.10 11.91 3.22 13.81 Interest & Depreciation 1.36 0.43 1.79 0.41 1.66 Operating Profit 8.45 1.67 10.12 2.81 12.15 % 12.1 8.1 11.2 12.2 12.8 for statistical comparision only 11#12Highlights of Q4/FY08 EBITDA margins - 12.6% during Q4 v/s 14.8 for 9M Major reasons for fall in margins are ■Lower turnover, hence higher % of fixed cost ( Q4 - Rs. 20.74 billion v/s Q3 - Rs. 25.00 billion) Adverse mix change BAJAJ Distinctly Ahead Mark to market provision on forward cover, Rs 160 million 12#13Combined annual results BAJAJ Distinctly Ahead 2007-08 Rs. in billion BAL BFS BHIL Total FY 2006-07 Change % Sales 96.90 96.90 106.06 Less Excise duty 10.27 10.27 13.14 Net sales 86.63 86.63 92.92 -7 Windpower generated 0.35 0.35 0.33 Other income 5.06 0.71 3.55 9.32 7.51 Total Income 91.69 1.06 3.55 96.30 100.76 -4 Expenditure Material 66.20 66.20 69.01 Other expenses 11.56 0.11 0.06 11.73 12.35 Interest 0.05 0.05 0.05 Depreciation 1.74 0.30 2.04 1.90 Less Exp capitalized 0.23 0.23 0.32 sub-total 79.32 0.41 0.06 79.79 82.99 Compensation for VRS 1.02 1.02 0.39 Export incentive w/off 0.10 Total expenditure 80.34 0.41 0.06 80.81 83.48 -3 Profit before tax 11.35 0.65 3.49 15.49 17.28 -10 Provision for tax 3.79 0.21 0.42 4.42 4.90 Profit after tax 7.56 0.44 3.07 11.07 12.38 -11 EPS (annualized) 54.2 3.1 30.3 109.4 * 122.3* * Considering 101,183,510 number of shares 13#14Dividend declared for ... FY07 (before demerger) FY08 Rs. 40/share : 400% ➤ Bajaj Auto Rs. 20/ share : 200% ➤ Bajaj Holdings & Investment Rs. 20/ share : 200% Bajaj Finserv Rs. 1/ share : 20% BAJAJ Distinctly Ahead 14#15Thank you BAJAJ Distinctly Ahead No part of this presentation is to be circulated, quoted, or reproduced for any distribution without prior written approval from Bajaj Auto Limited, Mumbai-Pune Road, Akurdi, Pune-411 035, India. Certain part of this presentation describing estimates, objectives and projections may be a "forward looking statement" within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied. This material was used by Bajaj Auto Limited during an oral presentation; it is not a complete record of the discussion. 15