Mahindra & Mahindra Ltd. · NSE:M&M
Mahindra & Mahindra — Motilal Oswal Investor Conference & CEO track Session (September 2022)
25 slides from Mahindra & Mahindra's conference presentation, Sep 19, 2022
Slide 1: Exchange filing cover letter for investor meeting 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: 19th September, 2022 National Stock Exchange of India Limited BSE Limited "Exchange Plaza", 5th Floor, Phiroze Jeejeebhoy Towers, Plot No.C/1, G Block D
Slide 2: Reignited Value Creation - Investor Presentation September 2022
Mahindra & Mahindra Limited REIGNITED VALUE CREATION Investor Presentation September 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
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 RY O F VA L U E C R E AT I O N Best performing stock in NIFTY from 2002-18 2002-2018 5 CAGR: 31% 5
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 CAGR: 31% 2002-2018 08/18 – 03/20 6 CAGR: 31% CAGR: -54% 6
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– 08/22 7 CAGR: 31% CAGR: -54% CAGR: 96% 77
Slide 9: Reignited 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 • Seed
Slide 10: Leadership in Auto & Farm
L E A D E R S H I P I N A U T O & FA R M AUTO FAR M • Market leader in SUV revenue @ 17.1% in Q1F23 • World’s largest Tractor brand by Volume • 5 SUV blockbuster launches – 240K+ open bookings* • Q1F23 market share @ 42.7%, +90 bps gain • Market leader in Electric 3W @ 74.4% in Q1F23 • Launch of Yuv
Slide 11: 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 12: EV Co. BII Investment
EV CO. BII INVESTMENT 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 13: EV Portfolio: Upcoming
EV Portfolio: Upcoming L x W x H: 4370 x 1900 x 1635 mm2775 mm Wheelbase • A true standout, with a taste for life to explore the impossible. It is a Sports Electric Vehicle (SEV) in the truest sense, making it a new category. • A race inspired design complemented by seamless multi-sensory experience
Slide 14: XUV400: A Winning Combination
XUV400: A Winning Combination 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 13
Slide 15: Strategic Imperatives: Lead ESG Globally, Outperform Financially
STATEGIC IMPERATIVES Lead ESG Outperform FutuRise Globally Financially 14 14 11 42
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-
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 7
Slide 19: Collaborative Agile Bold
COLLABORATIVE AGILE BOLD 18 181 8
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 9
Slide 21: Thank You
THANK YOU 202 0
Slide 22: Cash Deployment (F22-F24)
CASH DEPLOYMENT (F22-F24) 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 T
Slide 23: 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 22 222 2
Slide 24: 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 23 232 3
Slide 25: 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
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