Mahindra & Mahindra Ltd. · NSE:M&M
Mahindra & Mahindra — Non-Deal Roadshow (March 2024)
32 slides from Mahindra & Mahindra's roadshow presentation, Mar 22, 2024
Slide 1: Exchange filing cover letter for Non-Deal Roadshow
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 March, 2024 National Stock Exchange of India Limited BSE Limited "Exchange Plaza", 5th Floor, Phiroze Jeejeebhoy Towers, Plot No
Slide 2: Delivering Scale - Investor Presentation March 2024
Mahindra & Mahindra Limited Delivering Scale Investor Presentation March 2024 1
Slide 3: Our DNA
Our DNA Women empowerment Environment Governance Educate 1Mn+ girls 100% improvement in energy annually by 2026 productivity1 by 2030 M&M recognized in “Leadership” category for 3rd straight year Economic empowerment for Bold targets for Net Zero Mindset, People, Processes 1Mn+ women annually by 202
Slide 4: Our Philosophy: #Together we rise
Our Philosophy Drive positive change in the lives of our communities. Only when we enable others to rise will we rise. #Together we rise 3 3 3 35
Slide 5: History of value creation
H I S T O RY O F VA L U E C R E AT I O N PAT Lens: History of value creation with accelerating trajectory PAT* (Rs. Cr.) FY2002-2023 3X in 2 years CAGR +75% 10,282 CAGR -5% CAGR 4,667 3,347^ +43% 66 FY02 FY14 FY21 FY23 4 * After Exceptional Items after Non-Controlling Interest 4 4 ^ PAT after EI for
Slide 6: Our path to value creation
OUR PATH TO VALUE CREATION FY22-24 FY21-23 Capital allocation Pivot to growth (1 year agenda) (2 years agenda) Strategy − Turnaround or exit loss − Transform Core making companies − Establish Growth Gems Commitments 18% RoE 15-20% EPS growth Purpose and Values 5 5 55
Slide 7: Capital allocation: turnaround or exit
C A P I TA L ALLOCATION 1 B 2 PAT^ (Rs. Cr.) Loss making entities Turnaround Exit (26)* (3,429) In process FY20 FY23 6 * FY23 PAT is for continuing operations and does not include any losses of exited entities. It excludes hyperinflation accounting impact of Rs 120 Cr for Turkish operations 6 ^ Inte
Slide 8: Pivot to growth: transforming the core
PIVOT TO GROWTH … TRANSFORMING the CORE Actions Outcome • 5 mega launches…Quantum leap UV revenue MS: 13.2% → 20.2% • Regaining EV leadership; $9.1 Bn valuation (Q4F20) (Q3F24) Auto • Strengthened leadership through new launches and network expansion Market share: 39.4% → 42.6% Transform (Q4F20) (Q3
Slide 9: Pivot to growth: growth gems
PIVOT TO GROWTH … GEMS FY22 & FY23 – …and establishing growth gems Progress made so far Valuation¹ ($ Mn) On track to achieve target FY20 FY23 67% market share in 3W EV; IFC investment <1002 +630 Mn 734 Unlock OTPP investment to accelerate scale-up <200 +90 Mn 290 Robust launch pipeline with 9 launc
Slide 10: Reignited value creation
REIGNITED VALUE CREATION We delivered, and built foundation for growth Return on Equity EPS Market cap* in INR 92 in INR '000 Cr. +6.1 pts 19.9% 144 1.9X 1.7X 13.8% 49 99 84 30 4.4% FY19 FY21^ FY23 FY19 FY21^ FY23 FY19 FY21 Dec23 Enablers Data & Customer Purpose Talent Synergy Technology Experience
Slide 11: Value creation path forward
VALUE CREATION PATH FORWARD Opportunity today? India is well positioned Mahindra portfolio is We are poised to make across global aligned with India growth world class products macrotrends at scale … Global play 10 10 10
Slide 12: India growth opportunities
INDIA GROWTH OPPORTUNITIES India will add $4.2 Trillion to its GDP by 2030 Sectors mapped to macrotrends Sector contribution to GDP growth ($ Bn) FY23 FY30 Consumer, lifestyle and eCommerce 740 +1185 1925 Agriculture solutions 540 +415 955 Presence in Sectors Manufacturing and capital goods 400 +430
Slide 13: Mahindra portfolio aligned with India growth
MAHINDRA PORTFOLIO ALIGNED WITH INDIA GROWTH Sectors mapped to macrotrends Current portfolio Core Growth Gems Consumer, lifestyle and eCommerce Agriculture solutions Presence in Sectors SUVs LCVs Manufacturing and capital goods Financial services Logistics and mobility Green energy Technology soluti
Slide 14: Our portfolio today
OUR PORTFOLIO … TODAY AUTO SERVICES SUVs AND LIGHT COMMERCIAL VEHICLES FINANCIAL TECHNOLOGY LAST MILE MOBILITY ICONIC MOTORCYCLES HOSPITALITY REAL ESTATE TRUCKS & BUSES AUTO COMPONENTS LOGISTICS FARM AUTO RECYCLING TRACTORS AND AGRI SERVICES RENEWABLE ADVANCE PLATFORMS ENERGY AND AEROSPACE FARM MACH
Slide 15: Services significance
SERVICES SIGNIFICANCE PAT'02* (Rs. Cr.) PAT'23* (Rs. Cr.) CAGR 1,290 Auto 41 (Core Auto 2,620 Cr**) 18% Farm 30 3,950 26% Services (IT, Financial, Logistics, (5) 5,042 ++ Holidays, Real Estate, Etc.) Why Services? • Brand, Governance premium, Synergies with Core, Market reach and Talent • Significan
Slide 16: Strategic imperatives
STRATEGIC IMPERATIVES FY25 - 27 FY22 - 24 FY21 Deliver Scale Capitalize on Market Leadership Pivot Unlock full potential Capital to growth Allocation 5X growth challenge Disciplined capital allocation 15 15 15
Slide 17: Deliver scale
DELIVER SCALE Capitalize on Market Leadership Capitalize on Market Leadership Unlock full potential Auto Farm Services SUVs LCVs Trucks & Buses Growth Gems: 5X Challenge 16 16 16
Slide 18: Capitalize on market leadership: auto and farm
CAPITALIZE ON MARKET LEADERSHIP … AUTO & FARM AUTO FARM Customer obsessed brands Build a domestic fortress Propel ICE SUVs with cutting edge products Significantly grow international business Pioneer category creative E SUVs Pioneering technology leadership Build a CV Moat Scale Farm Machinery India
Slide 19: Unlock full potential: Mahindra Finance and Tech Mahindra
UNLOCK FULL POTENTIAL … MAHINDRA FINANCE & TECH M MAHINDRA FINANCE Tech Mahindra Improve asset quality Drive 300 bps margin expansion Lead the market and drive 5G proliferation Digital transformation Grow new age offerings Growth through diversification Augment Deep-Tech High-impact Ecosystem partne
Slide 20: 5X challenge for growth gems
5X CHALLENGE FOR GROWTH GEMS Strategic Imperatives Launch 10+ products/upgrades with best-in-class powertrain efficiency and design Unlock Scale-up from 1.5 GW to 7.0 GW by F27 with value unlock through InvIT structure Focus on key markets (MMR, Pune and BLR) through bock-bluster launches (15+ annua
Slide 21: 5X challenge = significant value creation
5X CHALLENGE = SIGNIFICANT VALUE CREATION What does 5X mean? 730 3.7 Bn 670 3.4 Bn 660 3.3 Bn 320 1.6 Bn 290 1.5 Bn 170 >1 Bn 170 > 1 Bn > 1 Bn > 1 Bn Total = 2.9 Bn Total = ~17 Bn x Valuations in $Mn as on 31-Mar-2023 20 20 20
Slide 22: Disciplined capital allocation
DISCIPLINED CAPITAL ALLOCATION Prioritized based on Annual and Quarterly Scrutiny by business alignment with group Capital Allocation leadership, Strategy, focus areas, value Process CFO & CEO office creation potential, ROE Next step – Short List Long List deep dive 21 21 21
Slide 23: Summary: our aspiration
SUMMARY … OUR ASPIRATION Deliver Scale Consistent delivery on commitments ROE % Commitment 1 Leverage market leadership 19.9% +6.1 pts : Differentiated offering in SUVs 13.8% : Leading product innovation 18% 2 Unlock full potential 0.3% : Diversified portfolio & stable asset quality FY19 FY20 FY23 :
Slide 24: Thank you
THANK YOU 23 9 23
Slide 25: Mahindra Group our DNA
MAHINDRA GROUP OUR DNA Set Governance Standards Enhance Lives of Communities Tangible Actions on Climate Structure Rural Greening Ourselves … Net Zero by 2030 ▪ Key businesses listed on stock exchanges ▪ 200 agri centers helping 800,000+ farmers ▪ Detailed sustainability plans by business Code of Co
Slide 26: M&M best performing stock in NIFTY since 2002
M&M Best performing stock in NIFTY 50 since 2002* 1st in last 20 years 2nd in last 1 year Company TSR% Ranking Company TSR% Ranking Mahindra 27% 1 ITC 68% 1 Britannia 27% 2 Mahindra 57% 2 Dabur India 26% 3 Coal India 41% 3 Bajaj Holdings 26% 4 NTPC 34% 4 HCL Tech 25% 5 Britannia 32% 5 Sun Pharma 25%
Slide 27: Value creation accelerated in F23
VA L U E C R E AT I O N … A C C E L E R AT E D i n F 2 3 Market cap of M&M +45 (Rs. kCr.) +57 144 +42 100 43 1 FY 2002 FY 2012 FY 2022 FY 2023 NSE Market Cap* 6 61 262 243 (Rs. Lac Cr.) Incremental market cap created by Mahindra Group in F23 is comparable to the incremental market cap created in the
Slide 28: Consolidated M&M results: Q1F24
CONSOLIDATED M&M RESULTS: Q1F24 Rs Cr Revenue PAT 33,892 19% 60% 3,508 28,414 2,196 Q1 F23 Q1 F24 Q1 F23 Q1 F24 Strong operating leverage in Auto and capital allocation actions 27 27 27
Slide 29: PAT Q1F24
PAT Q1F24 CONSOLIDATED M&M Rs Cr Q1 F23 Q1 F24 Q1 F23 to Q1 F24 60% Auto 462 1,401# 169 3,508 205 Farm 993 1,198 KG Mobility 405 (SYMC) Services 740 909 2,196 533 TechM 320 195 MMFSL 125 188 Growth Gems & Others 295 527 Total 2,196 3,508 PAT (Q1 F23) AUTO FARM SERVICES PAT (Q1 F24) 28 28 # Includes
Slide 30: Financial results: Q1F24 standalone
FINANCIAL RESULTS: Q1F24 STANDALONE M&M Rs Cr Revenue EBITDA PAT 24,368 23% 46% 98% 3,547 2,774 19,813 2,422 1,404 Q1 F23 Q1 F24 Q1 F23 Q1 F24 Q1 F23 Q1 F24 29 29 29
Slide 31: Net cash generated F22 – Q1F24
NET CASH GENERATED F22 – Q1F24 Rs Cr Rs Cr STANDALONE M&M + MEAL Auto Farm Services RsCr Total Rs Cr + Inflow 13,129 6,933 5,611 25,673 Deployment (9,058) (2,359) (415) (11,831) - Capex (6,000) (1,852) (7,852) - EV: MEAL net& (767) (767) - Investments Clean up (Cat C) (1,212) (1,212) Ongoing (1,079)
Slide 32: Cash deployment F22-F24
CASH DEPLOYMENT F22-F24 Rs Cr Rs Cr RsCr Rs Cr Base Invt Change Total Comments Auto capex (excl MEAL^) 7,900 +1,600 9,500 Capacity & Regulatory MEAL Investments 2,075 +1,125 3,200 Farm capex 3,400 - 3,400 Auto & Farm Investments* 1,500 +500 2,000 Group Cos. Investments 2,700 (1,100) 1,600 External i