FUTURE HERO Chairmans Speech

DEAR SHAREHOLDERS,

ON 1ST NOVEMBER, 2015, MY FATHER AND CHAIRMAN EMERITUS OF OUR COMPANY
LEFT FOR HIS HEAVENLY ABODE. HE WILL REMAIN WITH US FOREVER, IN OUR
HEARTS, GUIDING AND INSPIRING US ALL INTO THE FUTURE.

A PHILANTHROPIST, A LEADER AND A PEOPLE''''S PERSON, MY FATHER ENVISIONED
HERO AS THE SYMBOL OF OUR COUNTRY''''S ASPIRATIONS AND GROWTH. FROM
DEVELOPING WORLD LEADING COMPANIES IN THE BICYCLE AND MOTORCYCLE
INDUSTRIES, TO BUILDING ORGANISATIONS OF SOCIAL DEVELOPMENT, DR.
BRIJMOHAN LALL ESTABLISHED ENORMOUS INSTITUTIONS THAT CHANGED THE LIVES
OF MILLIONS AND SHAPED THE COURSE OF OUR COUNTRY''''S INDUSTRIAL GROWTH.
HE FOSTERED ENDURING RELATIONSHIPS AND DEMONSTRATED RESPECT AND
HARD-WORKING ETHICS THROUGHOUT HIS LIFE, INFLUENCING ALL OF US AT HERO
WITH HIS EXEMPLARY PRINCIPLES.

Dr. Brijmohan Lall will continue to be a beacon for India. Bearing his
philosophies, our company has remained the world''''s largest two-wheeler
manufacturer for 15 consecutive years. Hero''''s extended family of loyal
and committed supply chain partners is a legacy of his values and work
ethics. We, at Hero MotoCorp, are determined to uphold and grow this
rich legacy.

INDIAN ECONOMY AND BUSINESS ENVIRONMENT

The world is passing through uncertain times. Across the globe,
socio-political turmoil and economic volatility are almost impossible
to avoid. The ongoing refugee crisis in Europe; Brexit in UK, the
bitterly-fought Presidential election in the US; and the currency
crisis in Latin America and Africa - have all contributed towards
creating a lot of uncertainties across the globe.

The accelerating pace of change is an everyday reality and Hero
MotoCorp remains cognizant of the changing world.

India undoubtedly shines as one bright star amidst this global turmoil.
With a stable government, a well-established democratic political
system, an impartial judiciary, a rapidly growing economy, a vibrant
middle class and the ever-powerful ''''Indian intellect,'''' our country
enjoys a unique advantage over others to emerge as a global power in
the next decade.

This year also marks the 25th year of India''''s economic liberalisation.
The impact of those reforms has been so profound that the India of
today is completely unrecognisable from the India of 1991.

Allowing Foreign Direct Investment (FDI) in various sectors was one
significant aspect of the reforms that has had a considerably positive
impact on the economy. It not only turned India into a true free-market
economy, but also ''''opened'''' the country to the world. The growth and
expansion of the Information Technology (IT) industry in India is an
outstanding example of how the privatisation policy of the government
has helped the spirit of entrepreneurship and innovation.

In a nutshell, by eliminating the ''''license raj,'''' the economic reforms
of 1991 helped liberalise and unshackle the Indian economy, enabling
all of us to think bold and dream big.

Moreover, the current government at the Centre has unleashed the much
needed ''''second wave'''' of reforms, providing a strong fillip to the
agenda of growth and development. With Prime Minister Shri Narendra
Modi''''s ''''Make in India'''' initiative, the country will be led into an era
of a ''''manufacturing revolution.'''' Because of these transformations, now
is one of the best times to do business in India and ''''from India.''''

Indeed, we all, at Hero MotoCorp, have come a long way since. Today our
Company has more than 65 million satisfied customers worldwide, and has
created many iconic brands and created huge value for all stakeholders.

GLORIOUS FIVE YEARS OF SOLO JOURNEY

The Indian economy faces internal challenges that are inevitable in
such a large and diverse country as ours. The domestic automotive
industry, which is a significant contributor to the Indian economy, has
not remained immune to these challenges. As a result, the two- wheeler
industry has gone through a sluggish phase for the past few years.

Despite the adverse environment, our company has maintained its market
leadership, staving of intense competition. The conclusion of FY
2015-16 marked the completion of five years of our solo journey.
During this time period, our company has proven its inherent
capabilities and resilience to not just retain its leadership at home,
but also transform itself into a global automotive player with robust
in-house research, design and development capabilities.

Hero MotoCorp is already a global leader in developing energy-efficient
mobility solutions. Be it through our Garden Factory at Neemrana or the
fuel-efficient i3S technology, we have set global benchmarks in
promoting environment-friendly manufacturing. For carving out a
distinctive niche in building sustainable platforms for future growth,
Hero MotoCorp was bestowed with the coveted ''''Manufacturing Innovator of
the Year'''' award at the inaugural TIME India Awards.

It was indeed a great privilege to receive the award from the Honorable
Prime Minister, Shri Narendra Modi at the ''''Make in India Week''''.

Our Centre of Innovation and Technology (CIT), the core of Hero''''s
research and development, began operating in March 2016. The CIT is a
one-of-its-kind facility housing all aspects of research, development
and testing capabilities under one roof. With a team of highly talented
engineers drawn from within the country and from around the world, the
CIT will be the origin of all future products and technologies from
Hero MotoCorp.

In September 2015, our company established its first overseas facility
in Colombia in an effort to expand our manufacturing base. In the
process, Hero became the first Indian two-wheeler company to have a
manufacturing facility in Latin America. This facility will also act
as an exports hub for the Andean countries. During the year, Hero
MotoCorp has also expanded its global presence to 32 countries across
Asia, Africa and South and Central America.

This fiscal year also marks two very significant milestones in Hero''''s
solo journey as a company. Firstly, in October 2015, Hero introduced
the Maestro Edge and Duet scooters - the very first products to have
been completely designed and developed by our in-house R&D team.
Attractively designed with contemporary styling and loaded with a host
of unique features, / Maestro Edge and Duet have been well received by
customers, helping our company increase its market share in the scooter
segment.

Secondly, in February 2016, during the Auto Expo, we showcased another
one of our new innovations, Splendor Smart 110 - the first motorcycle
to have been designed and developed completely in-house by Hero R&D.
Splendor iSmart 110 has already received a positive initial response in
the market.

With the launch of these three all-new products - the Maestro Edge, the
Duet and the Splendor iSmart 110 - our company has now proven its
technology capabilities to develop world-class products fit for the
global audience.

AND THE EXCITING ROAD AHEAD

Having laid a strong platform of technology and production
capabilities, our aim now is to further expand our portfolio and
develop technologies that will have a positive and sustainable impact
on the world

The road ahead is indeed challenging yet Hero has proven time and again
that we are able to turn adversity into opportunity. We are currently
working on developing a series of new products across multiple
segments, including those in the premium space. We are also working on
developing next generation technologies to stay ahead of the curve, so
that our company is future-ready

At the same time, Hero continues to engage with our customers across
urban and rural markets. Our innovative rural initiative ''''Har Gaon Har
Aangan '''' (Every Village Every Household) has been one of the most
successful rural customer engagement programmes, and will continue to
give us the competitive edge in the domestic market. Considering the
low two- wheeler penetration in the country, our company sees a
tremendous growth potential for many years to come.

Despite the current headwinds in several markets across Latin America
and Africa, we will continue to expand our footprint in the global
markets. Our upcoming manufacturing facility in Bangladesh, which will
become operational this fiscal year, is set to be yet another important
milestone in our global journey.

The domestic market continues to be sluggish due to various factors.
However, positive forces such as the above-average monsoons, the
increased spend on infrastructure by the government and the Pay
Commission payout are expected to further support the market growth
this year. With a large distribution network across the country, huge
brand equity and trust of customers, our company is well poised to
leverage these positive sentiments.

As the Chairman, I promise to continue to uphold the value system that
binds the large Hero family together. We at Hero remain proud of our
brand and strong equity with our employees, customers and shareholders.
We will continue to lead with innovative products, expand
geographically to develop our brand globally while continuing to
provide superior returns to our shareholders.

On behalf of everyone at Hero MotoCorp, I thank each one of you ? our
valued shareholders, dealers, ancillaries, vendors, employees including
workmen and our customers in India and across the globe for your
continued support and faith in us.

Pawan Munjal

Chairman, Managing Director

and Chief Executive Officer

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