TVS Motor : 30th Annual Report 2021-2022 July 2022

TVS AGM Recording

June 27, 2022

• Moderator:
• Good afternoon to all. We have 46 number of shareholders present and attending the meeting. They are holding 24.26 crores of shares constituting 52% of the share capital of the company. Now I request Chairman to convince the meeting.
• Prof. Sir Ralf Dieter Speth - Chairman, TVS Motor Company Limited:
• Good morning and good afternoon, ladies and gentlemen. Today, June 27th, 2022 we are hosting the 30th Annual General Meeting of TVS Motor Company Limited on a virtual platform and I, Professor Sir. Ralf Dieter Speth, Chairman of the company called the meeting to order and I also state officially that the requisite quorum is present and first of all, I really would like to thank you all for your time and your interest and your commitment in TVS. Let's start the meeting with a prayer.
• Prayer was played.
• Moderator:
• I request Chairman to read out the statutory requirement for this meeting.
• Prof. Sir. Ralf Dieter Speth - Chairman, TVS Motor Company Limited:
• Dear ladies and gentlemen. I would like to start informing you about the stationary requirements and their fulfillment. In compliance with the circular issued by the Ministry of Corporate Affairs and the Securities Exchange Board of India, this AGM is being convened through video conferencing and has engaged National Security Depository Limited, NSDL for the purpose. Soft copies of the Register of Directors and key managerial personnel and their shareholdings, the Register of Contracts, the register of members and dependent shareholder are accessible on the company's website,www.tvsmotor.comduring the continuance of the AGM and as per the guidelines, the company has sent the annual report to its shareholders through e- mail. Hard copies of the annual report were sent to those shareholder who requested for the same and shareholders participating at the AGM who have not cast their votes earlier through e-voting can please exercise their votes by using the link provided on the NSDL website and now I want to request the Directors to introduce themselves. There's a prescribed process for this. A - The moderator will call out the Directors name one by one and B - The Directors will introduce themselves as mentioned in their agenda notes circulated. So please let's start.

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• Moderator:
• Thank you, Sir. I will call all the Directors name one by one. Mr. Sudarshan Venu, Managing Director.
• Mr. Sudarshan Venu -- Managing Director, TVS Motor Company Limited:
• I'm Sudarshan Venu, Managing Director.
• Moderator:
• Thank you, Sir. Mr. K. N. Radhakrishnan, Director and CEO.
• Mr. K. N. Radhakrishnan -- Director & CEO, TVS Motor Company Limited:
• Good afternoon. I'm K. N. Radhakrishnan, Director & CEO of the company.
• Moderator:
• Thank you, Sir. Mr. C. R. Dua, Independent Director.
• Mr. C. R. Dua -- Independent Director, TVS Motor Company Limited:
• I am C. R. Dua, an Independent Director of the company and I would also like to inform the shareholders that I am the Chairman of the Nomination and Remuneration Committee. Thank you.
• Moderator:
• Thank you, Sir. Mr. R. Gopalan, Independent Director.
• Mr. R. Gopalan -- Independent Director, TVS Motor Company Limited:
• Good afternoon. This is Gopalan. I am an Independent Director and also the Chairman of the Audit Committee.
• Moderator:
• Thank you, Sir. Mrs. Lalita D. Gupte, Independent Director. Madam you are on mute.
• Prof. Sir. Ralf Dieter Speth - Chairman, TVS Motor Company Limited:
• Unmute.
• Mrs. Lalita D. Gupte -- Independent Director, TVS Motor Company Limited:
• I am Mrs. Lalita D. Gupte, Independent Director. Thank you.

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• Prof. Sir. Ralf Dieter Speth - Chairman, TVS Motor Company Limited:
• Thank you.
• Moderator:
• Mr. T. Kannan, Independent Director.
• Mr. T. Kannan -- Independent Director, TVS Motor Company Limited:
• I am T. Kannan, Independent Director of the company. Thank you.
• Moderator:
• Thank you, Sir. Mr. H. Lakshmanan, Non-Executive Director.
• Mr. H. Lakshmanan --Non-Executive Director, TVS Motor Company Limited:
• I am H. Lakshmanan, Non-Executive Director.
• Moderator:
• Thank you, Sir. Mr. H. K. Singh, Independent Director.
• Mr. H. K. Singh -- Independent Director, TVS Motor Company Limited:
• I am Hemant Krishan Singh, Independent Director and Chairman of the Stakeholders Relationship Committee.
• Moderator:
• Thank you, Sir. Dr. Lakshmi Venu, Non-Executive Director.
• Dr. Lakshmi Venu --Non-Executive Director, TVS Motor Company Limited:
• I am Lakshmi Venu, Non-Executive Director of the company.
• Moderator:
• Chairman Sir, I wish to inform that Mr. Venu Srinivasan, Chairman Emeritus and Managing Director and Mr. Kuok Meng Xiong, Independent Director is not present due to personal issues.
• Prof. Sir. Ralf Dieter Speth - Chairman, TVS Motor Company Limited:
• Thank you for the information and dear Directors, thank you for your introduction. Now, let's go to the notice and qualified order desk report. Ladies and gentlemen, according to the order, I will inform you now about the results of the audit session. The notice of the meeting has already been circulated to the shareholders on the 3rd of June, 2022 and both the stationary auditors report and the secretarial audit report

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to the shareholders are already available with you and both reports are free, are free from any qualifications, observations, or other remarks. Great result, I really would like to take the opportunity to thank the teams involved for their good work. So, now I guess I have to come to the Chairman's note and my speech.

• Ladies and gentlemen, I do have immense pleasure in welcoming you to the 30th Annual General Meeting of TVS Motor Company, the third time on the virtual platform and right from the beginning, I want to take this opportunity to extend my sincere appreciation and gratitude for all the relentless efforts of each and every one of you towards making TVS Motor Company a strong global player in smart, advanced, high tech, and high quality mobility. Looking back, the year bygone witnessed several waves of pandemic, multiple supply and logistic chain disruptions, and sustained commodity price increases, and in addition the outbreak of geopolitical unrest has critically affected the entire globe already. Admit this, the year 21-22 will be remembered for the unparalleled resilience of human spirit across the world, even more so in the Indian populace, the Indian economy, the industry, and our company. The employees of TVS demonstrated this not only at work with their agility in adapting to the new work environment, but also contributing to their community and the society as volunteer frontline COVID warriors, assisting in sanitizing and relieve activities.
• They live really our shared values and make us proud and this can only be appreciated with the utmost respect and I really would like to ask and say thank you for every contribution to everyone. Now ladies and gentlemen, let's come to the overall business overview and I want to start with the industrial overview of the year 21-22. Firstly, let's start with the domestic market and the domestic industry. Overall, the Indian economy bounced back after the COVID-induced shock in the previous year. Recovery of the aggregated demand was supported by strong efforts from the government through increased spending and RBI's low interest rate regime; however, nevertheless the domestic 2-Wheeler industry declined by 11% in 21-22. On the back of a 13% decline in 2020-21. The industry was just at a size of 13.47 million and that's similar to a decade of level of 13.41 million in 2011 and 2012.
• At challenge, the seasonality. The seasonality was also characterized by high volatility in 21-22. Quarter one grew by 85%, quite clear partially due to the low industry base on the previous year, but all subsequent quarters witnessed declines year-on-year. Quarter 2, -12.4%. Quarter 3, -24.9% and quarter 4, at the end of the day -23.3%. this decline of the 2-Wheeler industry was due to weakened demand in both the urban and rural markets with a later being severely impacted. While then monsoon remained favorable, the non-agriculture, rural service sector underperformed significantly.
• The rural markets felt the combined efforts and effects of increased income erosion, overall inflation, and commodity cost increases, and this translated into lower demand and the inter level of commuter motorcycles and mopeds and so the scooter and premium motorcycle industry declined by 11% and 24% respectively over the last year. Scooter industry decline is primarily due to pandemic impact,

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slow resumption of colleges and work from home practices, and the premier motorcycle segment decline is largely attributed to supply chain issues, especially as you know the semiconductor non-availability. However, the commuter motorcycle industry grew by 1.7% and the segments resilience reflects a continuing need for mobility to fulfill economic and social responsibilities.

• Mobility as we all know is a basic right. Now large numbers of consumers today are actively considering EVs, so battery electric vehicles for their respective needs and today the EV industry predominantly operates in scooter and today's market share is already at around 10% of the total scooter business. So IEs and EVs and that's a growing sensitivity to climate change and resulting impacts, customer convenience, and the improved total cost of ownership TCO proposition, considering rising fuel prices, so accelerated consumer interest in this battery electric vehicles and the fame two enhancement PLI state subsidy and not the EV related infrastructure initiatives of the government reinforced also consumers face in that segment. But let's now come to the international business. Although, the industry in the national revival puts COVID bouncing back to the level of 2019-2020 with strong growth of personal mobility needs and the marginal impact of pent-up demand post lockdowns.
• The Latin American market with an annual size of 6.3 million posted a healthy growth of 37% over previous year. The African market is an estimated 2-Wheeler industry of 5.2 million units grew by 15% over 2020-21. A health growth in the key markets such as the Congo and Nigeria and the Asian market grew by 12% in 2021- 22 over the previous year to 14.5 million units. Just a brief score of the 3-Wheelrs; the 3-Wheeler domestic industry, so small passenger grew by 65% with 96,600 units as against 58,400 units in fiscal 2020-21 and the export market group by 26% from 387,000 units of 489,000 units until last financial year. That's the market, but let me now move from the industry overview to the achievements to the TVS performance. The company TVS, sold 31.37 lakh units of 2-Wheelers in 21-22 and as a result the company registered both its highest ever turnover of ₹20,809 crore and its highest ever profit before tax PPT of ₹1,213 crore despite many headwinds. In the domestic 2-Wheeler market, TVS has achieved sales of 20.3 lakh units, motorcycles being 7 lakhs, and balance of 13.3 lakhs in scooters and mopeds as compared to 21.6 lakhs in 2020-21. This is a decline of 6% clear, but this relatively small decline outperformed the industry, which declined by 11% as highlighted already earlier.
• In the domestic motorcycle markets, TVS achieved sales of 7.2 lakh units a growth of 12% over 2021. TVS Apache performed better than the premium motorcycle industry with sales of 3.2 lakh units, hosting a slight decline of only 1%. While the premium motorcycle industry declined by 24% over the previous year and the company sold 3.77 lakh units of commuter motorcycles in 21-22, which is a growth of 26.4% over last year and the newly launched you've seen it just in the image, the newly launched TVS Raider is well received by customer and has even helped in achieving this remarkable growth rate. In domestic scooters, the company achieved sales of 8.56 lakh units and registered the decline of 7% of over 2020-21 and in EV, the company achieved sales of 10,773 units of IQ electric scooters already. Let's

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