Mahindra & Mahindra Ltd. · NSE:M&M
Mahindra & Mahindra — Investor Presentation (July 2022)
18 slides from Mahindra & Mahindra's investor presentation, Jul 8, 2022
Slide 1: Exchange cover letter: presentation to analysts and investors
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: 8th July, 2022 National Stock Exchange of India Limited BSE Limited "Exchange Plaza", 5th Floor, Phiroze Jeejeebhoy Towers, Plot No.C/1, G Block Dalal S
Slide 2: Press & Analyst Meet, 8th July 2022
PRESS & ANALYST MEET 8th July 2022
Slide 3: Blockbuster Launches: 143K+ Open Bookings
BLOCKBUSTER LAUNCHES: 143K+ OPEN BOOKINGS 14k open bookings 80k open bookings 26k open bookings 15k open bookings 6.7k per month 9.8k per month 5.3k per month 8.2k per month XUV300 XUV700 THAR BOLERO (incl NEO) SCORPIO-N 2 Monthly bookings basis last Jan-Jun’22 and Open bookings as on 1st Jul’22
Slide 4: M&M - A Strong SUV Line Up with Highest Revenue MS
M&M - A STRONG SUV LINE UP WITH HIGHEST REVENUE MS A very strong portfolio of SUV brands across segments M&M at #1 position on revenue market share in Q4 and H2 F22 SUVs: H2 F22 Revenue MS Rank MAHINDRA 1 (16.8%) TATA 2 HYUNDAI 3 MARUTI SUZUKI 4 KIA 5 TOYOTA 6 Competition Brands ~15 40+ Competition
Slide 5: SUVs to Continue Being the Largest PV Segment
SUVS TO CONTINUE BEING THE LARGEST PV SEGMENT • SUV fastest growing segment in India: Others Sedan - multiple new model launches MPV • SUVs are more aspirational: Hatch - Stylized with presence - Enhanced safety with latest tech SUV - Powered with superior performance Largest segment in 2021; 15% CA
Slide 6: India Electric SUV Market at an Inflection Point
INDIA ELECTRIC SUV MARKET 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 subs
Slide 7: Our Technology capability and Market position has created credibility in Electric SUVs
Our Technology capability and the Market position has created the credibility for success in Electric SUVs 6
Slide 8: Our Right to Win
OUR RIGHT TO WIN MORE ON 15 TH AUG, OXFORDSHIRE, UK • Design philosophy unveil and launch of all new purpose-built EV platform • Launch Brand Architecture with the product line-up and timelines - 4 BEV models by F26 in SUVs • Futuristic Human Machine Interface technologies, centered around customer
Slide 9: XUV400 Unveil in Sept'22
FIRST STEP IN ELECTRIC JOURNEY XUV400 UNVEIL IN SEPT’22 Deliveries to start in Jan-Mar’23 8
Slide 10: Deal Structure
mahindra DEAL STRUCTURE
Slide 11: With a Mission of Sustainable Development, BII Is Our Perfect Match
WITH A MISSION OF SUSTAINABLE DEVELOPMENT, BII IS OUR PERFECT MATCH $9.2bn $2.5bn 1,300 64 Businesses, Total assets, and Annual 60% in Africa; Countries invested in growing commitments 40% in South Asia UK’s Development Finance Institution and impact investor with Representative Investment Commitmen
Slide 12: Diligence by BII
DILIGENCE BY BII ▪ BII resources in India carried out extensive diligence including: ▪ Detailed discussions around M&M’s EV strategy and actual product design bucks ▪ Engaged Roland Berger for independent commercial evaluation including: ▪ EV market potential ▪ M&M’s competitive advantage ▪ Capex an
Slide 13: EV Co. Valuation of Rs.70,070 Crores ($9.1BN)
EV CO. VALUATION OF RS.70,070 CRORES ($9.1BN) ▪ Proposal to transfer identified assets of the 4 Wheel Passenger EV business to a new EV Co. – EV Co. business to include development, manufacturing and selling of 4 Wheel Passenger Electric Vehicles – Existing ICE brands to be licensed to EV Co. for EV
Slide 14: Transaction Structure
TRANSACTION STRUCTURE Mahindra & Mahindra Limited British International Investment • Invest upto Rs 1,925cr by way of Equity • Invest upto Rs 1,925cr in two tranches (Rs.1,200cr & Rs. 725cr) through CCPS Ownership: 2.75% to 4.76% EV Co EVCo to house: • 4W Electric Passenger Vehicles (SUV) • Related
Slide 15: EV Co Setup
EV CO SETUP ▪ EV Co will house all the EV brands, IP for 4-wheeler electric passenger vehicles Brands and IP ▪ Access to ‘Mahindra’ brand on arm’s length. ICE Specific brands like ‘XUV’ to be licensed ▪ EV Co to be asset light Support from ▪ M&M to provide manufacturing support on arm’s length M&M ▪
Slide 16: Leadership & Management
LEADERSHIP & MANAGEMENT ▪ M&M AFS Head will dual-hat by leading the EV Co and shall report to Board Leadership ▪ AFS Head to operate through a Management Council and CEO Management ▪ Management council initially to comprise of (a) President, Automotive, (b) President, Automotive Council Tech & Prod.
Slide 17: Cash Deployment
CASH DEPLOYMENT Rs Cr F22 - F24 Base Invt Change Total Auto capex (incl LMM) 6,000 +1,900 9,975 EV Co. 3,000 +1,000 11,900 EV 4W breakup Invt (1,925) F22 - F23 ~2,000 BII Investment 4,000 F24 ~2,000 Farm capex 3,000 +400 3,400 8,000 F25 – F27 ~6,000 Auto & Farm Investments* 1,500 - 1,500 Total 10,00
Slide 18: Q&A
mahindra Q&A
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