Mahindra & Mahindra Ltd. · NSE:M&M
Mahindra & Mahindra — Morgan Stanley Conference 2024
17 slides from Mahindra & Mahindra's conference presentation, Jun 13, 2024
Slide 1: Delivering Scale Investor Presentation June 2024
Mahindra & Mahindra Limited Delivering Scale Investor Presentation June 2024 1
Slide 2: 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 3: Our Philosophy
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 4: 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.) FY2002-2024 11,269 CAGR CAGR +50% -5% CAGR 4,667 3,347^ +43% 66 FY02 FY14 FY21 FY24 4 4 * After Exceptional Items after Non-Controlling Interest 4 4 ^ PAT after EI for continuing
Slide 5: 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 6: 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 7: Pivot to Growth: Transforming the Core
PIVOT TO GROWTH … TRANSFORMING the CORE Actions Outcome • 5 mega launches…Quantum leap UV revenue MS: 13.2% → 20.4% • Regaining EV leadership; $9.1 Bn valuation (Q4F20) (F24) Auto • Strengthened leadership through new launches and network expansion Market share: 39.4% → 41.6% Transform (Q4F20) (F24)
Slide 8: Reignited Value Creation
REIGNITED VALUE CREATION RoE (%) EPS (Rs) 2.2$ 11.2$ 17.7 18.4 100.7 14.8 13.8 80.7 58.8 48.7 0.3 4.4 1.0 16.2 F19 F20 F21^ F22 F23 F24 F19 F20 F21^ F22 F23 F24 Enablers Data & Customer Purpose Talent Synergy Technology Experience 8 *M&M Limited market cap; Closing value as of 31 March for correspon
Slide 9: 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 9 99
Slide 10: 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 11: 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 12: 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 13: 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 13 13 13
Slide 14: 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 14 14 14
Slide 15: 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 15 15 15
Slide 16: Summary: Our Aspiration
SUMMARY … OUR ASPIRATION Deliver Scale Consistent delivery on commitments ROE % Commitment 1 Leverage market leadership 18.4% +4.6 pts : Differentiated offering in SUVs 13.8% : Leading product innovation 18% 2 Unlock full potential 0.3% : Diversified portfolio & stable asset quality FY19 FY20 FY24 :
Slide 17: Thank You
THANK YOU 23 9 17