Mahindra & Mahindra Ltd. · NSE:M&M
Mahindra & Mahindra — Non-Deal Roadshow (June 2022)
24 slides from Mahindra & Mahindra's roadshow presentation, Jun 15, 2022
Slide 1: Exchange filing cover letter on Non-Deal Road Show presentation
Mahindra & Mahindra Ltd. Mahindra Towers, Dr. G. M. Bhosale Marg, Worli, Mumbai 400 018 India Tel: +91 22 24901441 Fax: +91 22 24975081 REF:NS:SEC: 15th June, 2022 National Stock Exchange of India Limited BSE Limited "Exchange Plaza", 5th Floor, Phiroze Jeejeebhoy Towers, Plot No.C/1, G Block Dalal
Slide 2: Investor Presentation June 2022
Mahindra & Mahindra Limited INVESTOR PRESENTATION JUNE 2022 1
Slide 3: Our DNA
OUR DNA DIGNITY I N I T I AT I V E ETHICS DIVERSITY MERITOCRACY 22
Slide 4: Our purpose is to drive positive change in lives of our stakeholders & communities
Our purpose is to drive positive change in lives of our stakeholders & communities across the world - to enable them to 3 33
Slide 5: Mahindra Group
AUTO FARM FINANCE TECH M CORE BUSINESSES Mahindra $19 B 260,000+ 100+ Group TURNOVER EMPLOYEES COUNTRIES GROWTH GEMS LOGISTICS HOLIDAYS LIFESPACES SUSTEN ACCELO RURAL HOUSING FINANCE BRISTLECONE 4 44
Slide 6: History of Value Creation
H I S T O R Y O F VA L U E C R E AT I O N 2002-2018 CAGR – 31% 5 55
Slide 7: History of Value Creation
H I S T O R Y O F VA L U E C R E AT I O N 2002-2018 08/18 – 03/20 CAGR – 31% -54% 6 65
Slide 8: History of Value Creation
H I S T O R Y O F VA L U E C R E AT I O N 2002-2018 08/18 – 03/20 04/20– 06/22 CAGR – 31% -54% 377% 7 75
Slide 9: Re-ignited Value Creation: What We Said
R E - I G N I T E D VA L U E C R E AT I O N : W H AT W E S A I D F21 F22 Roadmap for ESG Maintain financial discipline Capital allocation Accelerate Core Growth Control costs • Leadership in Auto & Farm • Turnaround Mahindra Finance Pivot to Growth • New trajectory at TechM • Scale Growth Gems • See
Slide 10: Path to 18% ROE
PAT H T O 1 8 % R O E Rs Cr PAT: LOSS MAKING ENTITIES* RETURN ON EQUITY Intl Auto and Farm operations F20 F21 F22 (191) (2,358) 14.8% (3,429) 4.4% 0.3% F20 F21 F22 18%+ ROE in last 3 quarters * Consolidated M&M PAT before EI after NCI 9 97
Slide 11: Leadership in Auto & Farm
L E A D E R S H I P I N A U T O & FA R M AUTO FA R M • Market leader in SUV revenue MS for Q4 F22 - 17.8% • World’s largest Tractor brand by Volume • 4 SUV blockbuster launches - 170K+ open bookings • F22 market share at 40%+, 180 bps gain • Market leader in Electric 3W @ 73%+ • Launch of Yuvo Tech+
Slide 12: F22 Standalone
F22 STANDALONE Rs Cr REVENUE PAT BEFORE EI PAT AFTER EI 57,446 29% 26% 5.0x 44,630 5,144 4,935 4,071 984 F21 F22 F21 F22 F21 F22 11 119
Slide 13: F22 Consolidated
F22 CONSOLIDATED Rs Cr REVENUE -1) PAT BEFORE EI PAT AFTER EI 90,171 21% 35% 97% 74,278 6,236 6,577 4,609 3,347 F21 F22 F21 F22 F21 F22 (1-Tech Mahindra (Associate) revenue not included above Excludes Ssangyong due to discontinued operations 12 121 0
Slide 14: F22 PAT Before EI
F22 PAT BEFORE EI CORE CORE GROWTH GEMS INVESTMENTS Auto and Farm TechM and MMFSL 15% 39% ++ ++ 3,654 3,170 2,197 1,584 280 105 45 (189) F21 F22 F21 F22 F21 F22 F21 F22 Auto: Strong demand, TechM: Order wins $3.3Bn, Multiple new projects/ wins in Real Digital platforms of Porter, volatile supply env
Slide 15: Strategic Imperatives: Lead ESG Globally, Outperform Financially
STATEGIC IMPERATIVES Lead ESG Outperform FutuRise Globally Financially 14 141 2
Slide 16: Sustainability Actions
S U S TA I N A B I L I T Y A C T I O N S PLANET POSITIVE BY 2040 GREENING OURSELVES DECARBONISING OUR INDUSTRIES REJUVENATING NATURE • EP - 74% Improvement • Auto recycling • Afforestation - 20Mn trees planted • RE - achieved 45% • Auto path to Net Zero Scope 3 • Watershed management • Scope 1&2- ê
Slide 17: Path to Value Creation
PATH TO VALUE CREATION PATH TO ROE CORE GROWTH VALUE CREATION Ahead of committed Leverage successes Growth Gems schedule EV leadership: 3W, 4W $1 Bn valuation Turnaround of Intl farm Global scale Digital platforms subsidiaries Farm machinery Capital allocation Margins Monetize investments discipline
Slide 18: FutuRise
FUTURISE Technology Customer Experience Digital Platforms 17 171 5
Slide 19: Collaborative Agile Bold
COLLABORATIVE AGILE BOLD 18 181 6
Slide 20: Summary
SUMMARY Re-igniting Strong Financial Sharp focus on Global Value Performance in Accelerating Leadership in Creation a tough Growth… with Sustainable environment financial discipline Development 19 191 7
Slide 21: Thank You
THANK YOU 201 8
Slide 22: F22 Cash Flow
F22 CASH FLOW STANDALONE FINANCIALS Rs Cr Auto and Farm Group companies Total Opening Balance 10,949 4,297 + Inflow 7,483 1,998 9,480 - Capex (3,186) (3,186) - Capital deployed (1,234) (661) (1,895) F22 Net cashflow (incl. invt) 3,062 1,337 4,399 - Subs. Debt repaid (364) - M&M Debt repayment (1,796
Slide 23: Cash Deployment (F22-F24)
CASH DEPLOYMENT (F22-F24) Base Invt. Change Total Comments Auto capex (incl EV) 9,000 +2,900 11,900 Capacity (XUV 700 & others) 1,900 Cr Farm capex 3,000 +400 3,400 Capacity addition Auto & Farm Investments* 1,500 - 1,500 Turnaround on track Group Cos. Investments 3,500 (800) 2,700 Self funded growt
Slide 24: Reboot 2020-21: Capital Allocation
Reboot 2020-21: Capital allocation Tighter Capital Allocation Norms Loss-making businesses/entities to be closely scrutinized & put under 3 categories, viz. A, B and C Category A B C Delayed or unclear Entities with clear path to profitability Unclear path to Criteria path to 18% RoE but quantifiabl