HERO HONDA

CORPORATE PROFILE

Hero Honda Motors Ltd. is the world's largest manufacturer of two – wheelers, based in India.
The company is a joint venture between India's Hero Group and Honda Motor Company, Japan that
began in 1984. In 2001, the company achieved the coveted position of being the largest two-wheeler
manufacturing company in India and the ‘World No.1’ two-wheeler company in terms of unit volume
sales in a calendar year by a single company. Hero Honda has retained that coveted position till date.
Today, every second motorcycle sold in the country is a Hero Honda bike. Every 30 seconds, someone in
India buys Hero Honda's top-selling motorcycle – Splendor.

VISION

The Hero Honda story began with a simple vision – the vision of a mobile and an empowered India,
powered by Hero Honda. This vision was driven by Hero Honda’s commitment to customer, quality and
excellence, and while doing so, maintaining the highest standards of ethics and societal responsibilities.
Hero Honda believes that the fastest way to turn that dream into a reality is by remaining focused on that
vision.

MISSION

Hero Honda’s mission is to strive for synergy between technology, systems and human resources, to
produce products and services that meet the quality, performance and price aspirations of its customers.
At the same time maintain the highest standards of ethics and social responsibilities.
This mission is what drives Hero Honda to new heights in excellence and helps the organization forge a
unique and mutually beneficial relationship with all its stake holders.

TECHNOLOGY

In the 1980’s Hero Honda pioneered the introduction of fuel-efficient, environment friendly four-stroke
motorcycles in the country. Today, Hero Honda continues to be technology pioneer. It became the first
company to launch the Fuel Injection (FI) technology in Indian motorcycles, with the launch of the
Glamour FI in June 2006.
DISTRIBUTION

The Company’s growth in the two wheeler market in India is the result of an intrinsic ability to
increase reach in new geographies and growth markets. Hero Honda's extensive sales and service
network now spans close to 4500 customer touch points. These comprise a mix of authorized
dealerships, Service & Spare Parts outlets, and dealer-appointed outlets across the country.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

 FOR STAKEHOLDER

Hero Honda Motors takes considerable pride in its stakeholder relationships, especially
ones developed at the grassroots. The Company believes it has managed to bring an
economically and socially backward region in Dharuhera, Haryana, into the national
economic mainstream.

An Integrated Rural Development Centre has been set up on 40 acres of land along the
Delhi-Jaipur Highway. The Centre-complete with wide approach roads, clean water, and
education facilities for both adults and children-now nurtures a vibrant, educated and
healthy community.

The Foundation has adopted various villages located within vicinity of the Hero Honda
factory at Dharuhera for integrated rural development. This includes:

 Installation of deep bore hand pumps to provide clean drinking water.

 Constructing metalled roads and connecting these villages to the National Highway (NH
-8).
 Renovating primary school buildings and providing hygienic water and toilet facilities.
 Ensuring a proper drainage system at each of these villages to prevent water-logging.

Promoting non-conventional sources of energy by providing a 50 per cent subsidy on

biogas plants.
 RAMAN MUNJAL VIDYA MANDIR

The Raman Munjal Vidya Mandir began with three classes (up to class II) and 55
students from nearby areas. It has now grown into a modern Senior Secondary, CBSE
affiliated co-educational school with over 1200 students and 61 teachers. The school has
a spacious playground, an ultra-modern laboratory, a well-equipped audio visual room,
an activity room, a well-stocked library and a computer centre.

 RAMAN MUNJAL MEMORIAL HOSPITAL

Multi-specialty hospital equipped with the latest diagnostic and surgical technology. The
Raman Munjal Memorial Hospital provides healthcare to the rural population in and
around Dharuhera, and also caters to accident and trauma victims driving along the
Delhi-Jaipur highway.

 VOCATIONAL TRAINING CENTRE

In order to help local rural people, especially women, Hero Honda has set up a
Vocational Training Centre. So far 26 batches comprising of nearly 625 women have
been trained in tailoring, embroidery and knitting. The Company has helped women
trained at this centre to set up a production unit to stitch uniforms for Hero Honda
employees. Interestingly, most of the women are now self-employed.

 ADULT LITERACY MISSION

This Scheme was launched on 21st September, 1999, covering the nearby villages of
Malpura, Kapriwas and Sidhrawali. The project started with a modest enrolment of 36
adults. Hero Honda is now in the process of imparting Adult Literacy Capsules to another
100 adults by getting village heads and other prominent villagers to motivate illiterate
adults.
  RURAL HEALTH CARE

Besides setting up a modern hospital, the Foundation also regularly provides doorstep
health care services to the local community. Free health care and medical camps are now
a regular feature in the Hero Group's community outreach program.

 MARRIAGES OF UNDERPRIVILEGED GIRLS

Marriages are organized from time to time, particularly for girls from backward classes,
by the Foundation by providing financial help and other support to the families.

PROMINENT AWARDS IN 2006 FOR CSR

 Adjudged 7th Top Indian Company by Wall street Journal Asia (Top Indian Two
Wheeler Company).
 One of the 8 Indian companies to enter the Forbes top 200 list of world’s most
reputed companies.
 No. 1 in automobile industry by TNS Corporate Social Responsibility Award.
 Best in its class awards for each category by TNS Total Customer Satisfaction
Awards 2006.

MOBILINK

Mobilink (Pakistan Mobile Communications Limited), a subsidiary of Orascom Telecom, started

its operations in 1994, and has become the market leader both in terms of growth, as well as in
terms of having the largest customer subscriber base in Pakistan - a base of over 30 million and
growing. We pride ourselves in being the first cellular service provider to operate on a 100%
digital GSM technology in Pakistan, also offering state-of-the-art communication solutions to
our customers.

Mobilink offers exclusively designed tariff plans that cater to the communication needs of a
diverse group of people, from individuals to businessmen to corporations and multinationals. To
achieve this objective, we offer both postpaid (indigo) and prepaid (JAZZ) solutions to our
customers. Both indigo and JAZZ are the largest brands of their kind in Pakistan’s cellular
industry.

In addition to providing advanced voice communication services that make the lives of millions
of people easier, we offer a host of value-added-services to our customers. To ensure customer
satisfaction, Mobilink places extreme importance on its network coverage. It is for this reason
that we operate in over seven thousand destinations nationwide, providing international roaming
services in one hundred twenty countries across the globe. In a nut-shell, we speak your
language, everywhere.

CSR MISSION STATEMENT

 Support local communities in which customers, employees, investors and suppliers live.

 Programs to increase accessibility and use of mobile technology in education, community

health and employability.

 Protect the environment and promote sustainable practices in business value chain.

 Promote diversity and remove barriers that prevent people from participating fully in
society.

 Support personal development of employees and their involvement in local communities.

 Share benefits of developments in mobile communications technology as widely as

possible

HEALTH & EDUCATION POLICY

The Mobilink Foundation will support Education Initiatives focusing on:

1. Primary education. This is our top priority for grant allocation.

2. Vocational training (e.g. technical training)

3. Scholarships through educational institutes for higher education

 4. Teacher training

 Preference will be given to proposals focusing on improving education facilities in

remote areas.

 Preference for scholarships offered through educational institutions will be given to

students from rural and far-flung areas

The Foundation will support Basic Healthcare initiatives focusing on:

 Health Awareness and Education

 Vaccination and immunization campaigns

 Access to healthcare

Projects proposals that we do not support:

 Individual initiatives (not backed by an organization)

 Projects that do not clearly belong to the main areas outlined as areas of support

 Project applications that reach Mobilink Foundation by way of Mobilink employees

personally

 Organizations or institutions already receiving support from another part of Mobilink

 Contributions to political campaigns or projects or to organizations with high political

exposure

 Projects requiring supplementary financing in order to achieve their goals

MOBILINK FLOOD RELIEF EFFORTS

Pakistan is encountering one of the worst natural disasters in its history in the shape of
devastating floods. In this difficult time, millions of our brothers and sisters immediately need
our help and support. Together, Mobilink and Orascom Telecom has committed more than Rs.
236 million towards flood relief in addition to contributing thousands of volunteer hours. This to
date is one of the largest relief initiatives from the private sector.
Mobilink has been recognized by the Overseas Investor’s Chamber of Commerce and Industries
(OICCI) as top donor in flood relief amongst member companies. Mobilink has donated
prefabricated sheets worth Rs. 140 million to WHO which will be used as Health Units across
Pakistan. In addition to these shelters, Mobilink with the support of Orascom Telecom Holding
has committed a comprehensive relief-package, worth Rs. 85 million for the flood affectees.
Additionally, over Rs. 10 million have been raised by Mobilink employees through their
salaries and friends and family; SMS donations, and other private donors.

Our teams have reached more than 16,600 families in far-flung areas including the surroundings
of Multan, Muzaffargarh, Nowshera, Layyah, Charsadda, Swat, Thatta, Sukkur, D.I.
Khan as well as smaller towns and villages across Pakistan. We are now providing dry food
rations such as flour, oil and lentils as well as non-food items including towels, kitchen utensils
and hygiene kits to facilitate the rehabilitation process. We hope to further enhance these efforts
with your support.

EXPANSION OF SMS-BASED LITERACY INITIATIVE

Mobilink has announced the expansion of the SMS-based literacy project in partnership with
United Nations Educational, Scientific and Cultural Organization (UNESCO).

Launched last year with a view to reshaping lives through connectivity, the SMS-based literacy
program is a joint venture between Mobilink and UNESCO with a local NGO, Bunyad as the
implementing partner. 

The 5 month pilot project conducted with 250 adolescent girls in Punjab has shown a marked
improvement in their skills and has managed to overcome the socio-cultural barriers traditionally
associated with owning a cell phone. The President and CEO, Rashid Khan announced to
expansion of the program to include another 1,000 girls to understand the impact of replicating
the project on a larger scale.

In the pilot, the 250 learners received interesting and informative text messages daily in Urdu
and were expected to respond. In the second part, the participants were evaluated on a periodic
basis to assess gains in knowledge and learning. The program was conducted with the help of 10
teachers enlisted by Bunyad.
It was found that at the beginning of the program 57% of the girls were graded ‘C’ and only 28%
of the girls managed to score an ‘A’. However, near the end of the project the situation reversed
with percentage of girls receiving a ‘C’ dropped to only 11% whereas more than 60% of the girls
were awarded an ‘A’.

The program teachers also report a stark improvement in the confidence of the young girls as
owning a mobile phone made a difference to their sense of security.

MOBILINK SUPPORTS IDPS

Mobilink has always been at the forefront in helping the community by reaching out to lend a
helping hand. Holding true to this commitment it has recently supported the Internally Displaced
Persons of Swat.

On June 5 2009, Mobilink established a Mobilink Camp at Kund, Nowshera to support 1,000
families, i.e. roughly 7,000 IDPs. Camp Establishment included provision of the following:

 Shelter

 Food

 Health and Hygiene

 Non Food items such as kitchen utensils,  etc

 Water and Sanitation

 Education and Recreation

Estimated at about Rs 81 million, the project was made possible by Orascom’s continued support
for this noble cause. This is the largest private sector commitment of its kind to date for IDPs
relief.

In line with Mobilink’s tradition of employee volunteerism, a team of Mobilink employees was
personally involved in various areas of camp management, procurement of items and other
requirements.
PINK RIBBON

An exemplary CSR initiative has already been taken by Mobilink in the awareness of breast
cancer. Mobilink has been actively promoting Pink Ribbon Breast Awareness Campaign since
2008 and in last two years Mobilink has educated over 250 female employees about breast
cancer by regularly hosting Pink Ribbon Breast Cancer Awareness Seminars in Mobilink offices
across Pakistan.

Mobilink has not only supported Pink Ribbon Campaign to spread awareness among their female
employees but they have gone extra mile by promoting the Breast Awareness Campaign to their
customer base as well. Each year Mobilink sends flyers to its customers inserted in their bills in
hopes of spreading breast cancer awareness to a much wider audience. Mobilink also contributes
towards Pink Ribbon fund raising campaigns by frequently purchasing their merchandise on Pink
Ribbon seminars.

We need more of socially responsible companies like Mobilink to come forward and support
health related campaigns in our country. With this aim, let us all join hands to promote Pink
Ribbon Breast Cancer Awareness Campaign and many other health campaigns of such like to
ensure a healthy Pakistan. Let us declare this year be the Pink year for Pakistan. Let us dedicate
2010 to the women of our nation.

KEY MILESTONES ON OUR CSR JOURNEY:

 Ongoing: Charity and community involvement initiatives with The Citizen’s Foundation,
Roshni Homes Trust, Zindagi Trust, Shaukat Khanum Memorial Trust, Layton
Rahmatullah Benevolent Trust (LRBT), Lahore Businessmen Association for the
Rehabilitation of Disabled (LABARD), and Al-Shifa Eye Trust.

 October 2005: Mobilink Earthquake Relief: Rs 5 million was raised through SMS
donation with the company donating an extra Rs 5 million. Chairman Orascom Telecom,
Naquib Sawaris also donated $ 1 million for this cause.

 June 2006:  Mobilink helped establish the Plasmapheresis ward in collaboration with the
Pakistan Myasthenia Welfare Organization (PMWO) in Pakistan Institute of
Management Sciences (PIMS) hospital. It is completely funded by Mobilink.
 November 2006: Mobilink donated Rs 20 million to The Citizens Foundation (TCF) to
set up two schools; a primary school in Nathoki, Lahore and a secondary school in Taiser
town, Karachi.

 December 2006: CSR function introduced to the Marketing department within the
organization.

 December 2007: First CSR Report and launch of new CSR website.