Mahindra & Mahindra Ltd. · NSE:M&M
Mahindra & Mahindra — Non-Deal Roadshow (June 2024)
48 slides from Mahindra & Mahindra's roadshow presentation, Jun 23, 2024
Slide 1: Cover letter to stock exchanges
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: 23rd June, 2024 National Stock Exchange of India Limited BSE Limited "Exchange Plaza", 5th Floor, Phiroze Jeejeebhoy Towers, Plot No.
Slide 2: Bold by Design
Bold by Design Dr Anish Shah
Slide 3: World Around Us
World Around Us India Opportunity Elections Climate Change China & Geopolitics War Demographics 2
Slide 4: India Opportunity: Rare moment in the History of a Nation
India Opportunity: Rare moment in the History of a Nation 2023 GDP 2030P GDP $ Tn India #1 26.8 34.8 #1 #2 17.7 26.5 #2 will add #3 4.4 7.2 #3 as much as #4 4.2 6.0 #4 EU to the #5 #6 3.7 3.3 5.9 5.2 #5 #6 Global GDP by 2030 #7 3.0 3.9 #7 3
Slide 5: Viksit Bharat Vision - 2047
Viksit Bharat Vision - 2047 Manufacturing : 25% GDP … 16x increase GDP US $ 30 Tn Make in India for the World : US$ 8.7 Tn exports … ~11x increase US $ 17.5k per capita income Inclusive Growth : Women participation in labor force … 20% → 45% 4
Slide 6: Our DNA
Our DNA of private enterprise and the initiati MAHINDRA,, MOHAMMED ‘A sigiicant combination, wich rpreants who! might wl be trmed a cooperative efor ete orn tind derepmen 1 ndpenbl oth flelston of “You have heard of plans, mony pln ia his commeson. Now cones post Bch reno areal is nD ive of the indi
Slide 7: Our Rise Philosophy
Our Rise Philosophy Drive positive change in the lives of our communities. Only when we enable others to rise will we rise. #Together we rise 6
Slide 8: Our Businesses
Our Businesses AUTO SERVICES FARM 7
Slide 9: Our Businesses
Our Businesses AUTO & FARM FINANCE & TECH M GROWTH GEMS 8
Slide 10: Market Leadership
Market Leadership In India AUTO & FARM FINANCE & TECH M GROWTH GEMS #1 SUVs* #1 NBFC #1 Electric 3W #1 3PL Provider Rural & Semi-urban #1 Vacation Ownership Top 3 Farm Machinery #1 LCVs Top 5 IT Services #1 Auto Recycling Net Zero Residential Project #1 Tractors (Industry First) (Globally by Volume)
Slide 11: Who we are
Who we are Purpose Led Performance Driven Future Ready 10
Slide 12: Who we are: Purpose Led
_— Who we are Purpose Led ce
Slide 13: Educating Girls
Educating Girls Since 1997 Supported 231,692 Girls in FY24 ~5K Women Teachers Academic support after school hours School supplies ~7K Academic Support Centers Annual supply of feminine hygiene material ~4K Government Schools Professionally designed sports program 12
Slide 14: Empowering Women
Empowering Women Since 2007 Job Skilling for 228,540 Women in FY24 Employability Skilling Domain Skilling Agri Skilling 13
Slide 15: Planet Positive
Planet Positive Journey Commenced in 2008 Decarbonizing Our Greening Ourselves Rejuvenating Nature Industries 14
Slide 16: Planet Positive
Planet Positive Journey Commenced in 2008 Decarbonizing Our Greening Ourselves Rejuvenating Nature Industries 26% RE Share Transitioning to Green Portfolio: Enabling Sustainable Agriculture • EVs 100+% Increase in Efficiency • Net Zero Homes Hariyali: 2+ Mn Trees Planted in F24 • RE Portfolio 100+%
Slide 17: Highest Standards of Governance
Highest Standards of Governance Recognized in Golden Peacock Global Award National Award for Excellence Leadership Category For Excellence in Corporate in Corporate Governance for the Third Straight Year Governance 16
Slide 18: Who we are: Performance Driven
Who we are Performance Driven 17
Slide 19: History of Value Creation: PAT
History of Value Creation: PAT 11,269 PAT* (Rs. Cr.) 2002-2024 CAGR +84% CAGR 4,667 CAGR +43% -13% 1,813 66 FY02 FY14 FY21 FY24 * After Exceptional Items after Non-Controlling Interest 18
Slide 20: History of Value Creation: PAT
History of Value Creation: PAT 11,269 PAT* (Rs. Cr.) 2002-2024 CAGR +84% CAGR 4,667 CAGR +43% -13% 1,813 66 FY02 FY14 FY21 FY24 * After Exceptional Items after Non-Controlling Interest 19
Slide 21: History of Value Creation: PAT
History of Value Creation: PAT 11,269 PAT* (Rs. Cr.) 2002-2024 CAGR +84% CAGR 4,667 CAGR +43% -13% 1,813 66 FY02 FY14 FY21 FY24 * After Exceptional Items after Non-Controlling Interest 20
Slide 22: History of Value Creation: Market Cap
History of Value Creation: Market Cap Market Cap M&M Ltd. (Rs. Cr.) 2002-2024 343K CAGR CAGR CAGR +51% 99K 60K +7% +38% 1.2K FY14 FY21 10th Jun’24 FY02 M&M is the best performing stock in the NIFTY 50 from 2002-2024: TSR of 29% 21
Slide 23: Drivers of Value Creation
Drivers of Value Creation Trust Agility at Scale Disciplined Execution Group Synergies 22
Slide 24: Transformation Journey
Transformation Journey FY25 – FY30 FY22 – FY24 FY21 Deliver Scale Pivot to Growth Capitalize on Market Leadership Capital Allocation Unlock full potential 5X growth challenge Disciplined capital allocation 23
Slide 25: Evaluated Our Portfolio
Evaluated Our Portfolio Category A Category B Category C Clear path to 18% ROE Quantifiable strategic impact Unclear path to profitability 24
Slide 26: Took Tough Calls
Took Tough Calls Cat A&B: Turnaround Cat C: Exit PAT^ (INR. Cr.): Loss making entities (26)* (185)* (3,429) FY20 FY22 FY23 ^ International Auto & Farm operations; PAT After NCI, before EI: * FY22 and FY23 PAT is for continuing operations and does not include any losses of exited entities. F23 exclud
Slide 27: Transformation Journey
Transformation Journey FY25 – FY30 FY22 – FY24 FY21 Deliver Scale Pivot to Growth Capitalize on Market Leadership Capital Allocation Unlock full potential 5X growth challenge Disciplined capital allocation 26
Slide 28: Strategic Imperatives
Strategic Imperatives Capitalize on Market Leadership Unlock Full Potential 5x Challenge AUTO & FARM FINANCE & TECH M GROWTH GEMS 27
Slide 29: Auto: Mindset Shift
Auto : Mindset Shift Category Creating SUVs • Best in class Value Products • Cutting-edge Technology • Performance, Safety, Premiumization 28
Slide 30: Auto: Blockbuster SUV Launches
Auto : Blockbuster SUV Launches Capitalize on Market Leadership THAR XUV 700 SCORPIO-N XUV 3XO 50,000 bookings 50,000 bookings 100,000 bookings 50,000 bookings in 30 DAYS in 3 HOURS in 30 MINUTES in 60 MINUTES 29
Slide 31: Farm: Ready to Capitalize on Growth Opportunities
Farm : Ready to Capitalize on Growth Opportunities Farm Machinery International (Tractors) FM as % of M&M Tractor* Tractor Sales Market Share % 170% 41.6% 2% 20% 5.0% M&M India Global Global (ex China) India (F22) * Within <110 HP Tractor Segment 30
Slide 32: Mahindra Finance: Turnaround
Mahindra Finance : Turnaround Strong Financial Services Stable GNPAs Platform for Emerging India + Diversification Tech and Data Leader 31
Slide 33: Tech Mahindra: Turnaround
Tech Mahindra : Turnaround Drive 500 bps Margin Expansion Growth > Peer Average Augment Deep-Tech Drive Synergy from Portfolio Companies 32
Slide 34: Growth Gems: Value Creation
Growth Gems : Value Creation F20 F21 F23 F24 ~$ 1 bn Target 5x $ 4.2 bn Cumulative Market Cap Growth Cumulative Market Cap $ 1 bn Each Challenge Market Cap 33
Slide 35: Growth Gems: 5x ... In 5-7 Years
Growth Gems : 5x ... In 5-7 Years Strategic Focus Valuation ($ Mn, FY24) Strategic Focus Valuation ($ Mn, FY24) New launches; 5x capacity 792 Decarbonizing of Mobility and Energy 183 Block bluster launches 1,103 Farm Machinery Strenghthen product portfolio; Exports * Scale up to 7GWp (5x) 337 Grow B
Slide 36: Net Cash Generated
Net Cash Generated Post Capex and Investments FY22-24 Auto Farm Services Rs 4,411 Cr Rs 6,376 Cr Rs 6,916 Cr 35
Slide 37: We have Delivered on Financial Commitments
We have Delivered on Financial Commitments EPS ROE INR / Share 31% CAGR +5 pts 101 111 18.4% 59 13.8% 49 81 16 1 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY24 1. Driven by gains from SEL and Susten, offset by Trucks and Buses impairment 36
Slide 38: Transformation Journey
Transformation Journey FY25 – FY30 FY22 – FY24 FY21 Deliver Scale Pivot to Growth Capitalize on Market Leadership Capital Allocation Unlock full potential 5X growth challenge Disciplined capital allocation 37
Slide 39: Strategic Imperatives
Strategic Imperatives Capitalize on Market Leadership Unlock Full Potential 5x Challenge AUTO & FARM FINANCE & TECH M GROWTH GEMS 38
Slide 40: We Play in 70% of Indian GDP Growth
We Play in 70% of Indian GDP Growth 2023 2030 (Incremental) Sectors Sector contribution to GDP growth ($ Bn) Consumer, lifestyle and e-commerce 800 1,020 1,820 Agriculture solutions 610 310 920 Manufacturing and capital goods 420 390 810 Financial services 200 250 450 Logistics and mobility 160 150
Slide 41: Growth Drivers
Growth Drivers Capitalize on Market Leadership Unlock Full Potential 5x Challenge AUTO FINANCE GROWTH GEMS ICE Momentum Asset Quality Best in Class EV Diversification Strength in CV Brand and Trust Digital Transformation International Underlying Market Expansion FARM TECH M Focused Growth Strategy M
Slide 42: One New Opportunity
One New Opportunity Strong Right to Win Meaningful Potential Market-leading Returns Ability to Execute 41
Slide 43: Viksit Bharat Accelerator
Viksit Bharat Accelerator Make in India for the World 42
Slide 44: Who we are: Future Ready
_— Who we are Future Ready 43
Slide 45: Key Enablers: Talent
Key Enablers : Talent Leadership Pipeline Diversity, Equity and Inclusion 76%+ new Group Executive Board 14 Women in CXO roles Top Talent from leading companies 87% Leaders hired at Corporate are women 16/21 joined in last 5 years Targeted actions to enhance diversity 58 Future shapers and 100+ MALT
Slide 46: Key Enablers: Technology
Key Enablers : Technology Leader Attributes Outcomes 15% Time Reduction Each CEO must be a Tech Leader Maintenance of Shop Floor Machines Digital Twin 30 Minutes to 5 Minutes Customer Email Response Time Significant customer impact 80,000 Hours Metaverse Service Wait Time Reduction at Auto Dealers L
Slide 47: Key Enablers: Our Culture
Key Enablers : Our Culture gts BE, ss | COLLABORATIVE 46
Slide 48: Thank You
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