Mahindra & Mahindra Ltd. · NSE:M&M
Mahindra & Mahindra — Kotak Investor Conference 2023
24 slides from Mahindra & Mahindra's conference presentation, Feb 22, 2023
Slide 1: Exchange filing cover letter
Mahindra & Mahindra Ltd. Mahindra Towers, Dr. G. M. Bhosale Marg, Worli, Mumbai 400 018 India Tel: +91 22 2490 1441 Fax: +91 22 2490 0833 www.mahindra.com REF:NS:SEC: 22nd February, 2023 National Stock Exchange of India Limited BSE Limited "Exchange Plaza", 5th Floor, Phiroze Jeejeebhoy Towers, Plot
Slide 2: Reignited Value Creation: Investor Presentation February 2023
Mahindra & Mahindra Limited REIGNITED VALUE CREATION Investor Presentation February 2023 1
Slide 3: Our DNA
OUR DNA DIGNITY I N I T I AT I V E ETHICS DIVERSITY MERITOCRACY 22
Slide 4: Our Refreshed Purpose
OUR REFRESHED PURPOSE Drive positive change in the lives of our communities. Only when we enable others to rise will we rise. #Together we rise 3 3
Slide 5: Mahindra Group
AUTO FARM FINANCE TECH M CORE BUSINESSES Mahindra $19.7 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 RY O F VA L U E C R E AT I O N Best performing stock in NIFTY from 2002-18 2002-2018 CAGR: 31% 5 5 55
Slide 7: History of Value Creation: Concerns around Capital Allocation
H I S T O RY O F VA L U E C R E AT I O N Concerns around Capital Allocation 2002-2018 08/18 – 03/20 CAGR: 31% CAGR: -54% 6 6 65
Slide 8: History of Value Creation: Capital Allocation actions
H I S T O RY O F VA L U E C R E AT I O N Capital Allocation actions … maintaining strong fiscal discipline & blockbuster product launches in Auto business 2002-2018 08/18 – 03/20 04/20– 01/23 7 CAGR: 31% CAGR: -54% CAGR: 77% 7 75
Slide 9: Path to Value Creation
PATH TO VALUE CREATION PATH TO ROE CORE GROWTH VALUE CREATION Leverage successes Growth Gems Turnaround of Intl farm EV leadership: 3W, 4W $1 Bn valuation subsidiaries Global scale Digital platforms Capital allocation Farm machinery discipline Margins Monetize investments Cost controls Transformatio
Slide 10: Our Commitments: Target Performance
OUR COMMITMENTS Target Performance ROE% Path to RoE 18% RoE 13.8% 4.4% 14.8% 20.3% 0.3% Capital Allocation F19 F20 F21 F22 F23 YTD EPS: Rs. EPS Growth 15 - 20% 48.7 1.0 16.2 68.4 Operational Excellence EPS Growth 38.8 F19 F20 F21 F22 9M F23 9M • PBIT improvement in Auto by 300 bps Scale Margin ↑ YoY
Slide 11: 3 Blockbuster Launches
3 BLOCKBUSTER LAUNCHES 77k open bookings 37k open bookings 9k open bookings 119k open bookings 9.3k per moth 9.9k per month 4.6k per month 10.4k per month 16.5k per month THAR XUV700 SCORPIO-N SCORPIO N (incl XUV7OO BOLERO (incl NEO) Classic) Expanding reach with the launch of All New Biggest ever l
Slide 12: Strong UV Performance & Pipeline
STRONG UV PERFORMANCE & PIPELINE Open Bookings: ~266k 23k open bookings 77k open bookings 37k open bookings 9k open bookings 119k open bookings 9.3k per month 9.9k per month 4.6k per month 10.4k per month 16.5k per month XUV3OO & SCORPIO-N (incl XUV4OO XUV7OO THAR (Incl RWD) BOLERO (incl NEO) Classi
Slide 13: Farm: World's Largest Tractor Manufacturer
FARM…. WORLD’S LARGEST TRACTOR MANUFACTURER Build a Fortress in Domestic Business Global Expansion Reinvent Costs Aggressive Growth in Farm Machinery Business 12 12 12
Slide 14: Farm Machinery: Scaling Up for Quantum Growth
FARM MACHINERY: SCALING UP FOR QUANTUM GROWTH Global Industry 10X Revenue1 by 2027 Tractor: $60 Bn 1.7x Farm Machinery: $100 Bn 15 new products Indian Industry: F22 YTD F23 Revenue: In house manufacturing: Pithampur 40% YoY Growth Tractor: Rs 47,000 Crs Rapid channel expansion 0.2x Global expansion
Slide 15: Continuous Improvement in Auto & Farm Profitability
CONTINUOUS IMPROVEMENT IN AUTO & FARM PROFITABILITY FES (Standalone) PBIT % Auto (Standalone) PBIT % 6.7% 16.4% 16.6% 6.0% 16.0% 5.4% 5.5% 15.7% 3.5% Q4 F22 Q1 F23 Q2 F23 Q3 F23 Q3 F22 Q4 F22 Q1 F23 Q2 F23 Q3 F23 14 14 14
Slide 16: India E-SUV at an Inflection Point
INDIA E-SUV AT AN INFLECTION POINT • NITI Aayog forecasts battery EV penetration of 16% in 2026 and 28% in 2028. • 85% Indians are considering owning an EV, highest amongst key western markets* • Enablers: multi product offerings, enhanced charging infra, multi car households, Govt subsidies, better
Slide 17: XUV400: Fastest Booked Electric SUV in India
XUV400: FASTEST BOOKED ELECTRIC SUV IN INDIA 15,000 BOOKINGS IN 13 DAYS Best-in-class Best-in-class A C C E L E R AT I O N RANGE Best-in-class Best-in-class TECHNOLOGY S T Y L E & S PA C E Best-in-class SAFETY 16 16 16
Slide 18: EV Portfolio: Upcoming
EV PORTFOLIO: UPCOMING L x W x H: 4565 x 1900 x 1660 L x W x H: 4370 x 1900 x 1635 L x W x H: 4790 x 1905 x 1690 L x W x H: 4740 x 1900 x 1760 mm2775 mm Wheelbase mm2775 mm Wheelbase mm2775 mm Wheelbase mm2762 mm Wheelbase OCT’26 OCT’25 APR’25 DEC’24 A family space, to explore the A true standout, w
Slide 19: 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 FIRST & ONLY INDIAN AUTO CO. in DJSI WORLD INDEX for 2nd CONSECUTIVE YEAR GREENING OURSELVES DECARBONISING OUR INDUSTRIES REJUVENATING NATURE • EP - 74% Improvement • Auto recycling • Afforestation - 20Mn trees planted • RE - achieved
Slide 20: Collaborative Agile Bold
COLLABORATIVE AGILE BOLD 1,00,000 bookings in under 30 minutes 19 19 1197
Slide 21: Mahindra Finance & Tech Mahindra
MAHINDRA FINANCE & TECH MAHINDRA Rs Cr Revenue PAT Highlights 22% YTD TechM 20% 13,735 (8.5)% YTD ▪ Revenue 20% YoY … 700Mn+ TCV for 11,451 8 consecutive quarters 1,369 1,297 (5.3)% ▪ Margin improvement a key focus area Q3 F22 Q3 F23 Q3 F22 Q3 F23 Disbursements GNPA% Highlights MMFSL 14,467 11,824
Slide 22: Growth Gems (Listed)
GROWTH GEMS(LISTED) Rs Cr RsCr Rs Cr Logistics* Hospitality Real estate YTD YTD YTD 2.7x 15% 5.7x (21)% (1.9)x 33% PAT PAT PAT 33 1.8 1.4 14 25 (12) Q3 F22 Q3 F23 Q3 F22 Q3 F23 Q3 F22 Q3 F23 ▪ Revenue 17%, led by Auto business ▪ Robust occupancy of 85% ▪ Residential Launches of 1.11 msft ▪ Rivigo
Slide 23: Summary
SUMMARY Re-ignited Strong Financial Sharp focus on Global Value Performance with Accelerating Leadership in Creation operational excellence Growth with Sustainable financial discipline Development 22 222 2
Slide 24: Thank You
THANK YOU 23 9 23