Mahindra & Mahindra Ltd. · NSE:M&M
Mahindra & Mahindra — Non-Deal Roadshow (June 2023)
33 slides from Mahindra & Mahindra's roadshow presentation, Jun 9, 2023
Slide 1: Exchange filing cover letter on NDR presentation
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: 9th June, 2023 National Stock Exchange of India Limited BSE Limited "Exchange Plaza", 5th Floor, Phiroze Jeejeebhoy Towers, Plot No.C
Slide 2: Reignited Value Creation - Investor Presentation June 2023
Mahindra & Mahindra Limited REIGNITED VALUE CREATION Investor Presentation June 2023 1
Slide 3: Our DNA
OUR DNA DIGNITY I N I T I AT I V E ETHICS DIVERSITY MERITOCRACY 22
Slide 4: Our Refreshed Purpose
OUR REFRESHED PURPOSE Drive positive change in the lives of our communities. Only when we enable others to rise will we rise. #Together we rise 3 3
Slide 5: Our Businesses Take Pride in Doing Good
O U R B U S I N E S S E S TA K E P R I D E I N D O I N G G O O D FINANCIAL INCLUSIVITY DRIVING RURAL PROSPERITY CLEAN ENERGY ✓ ~1MM low income houses financed ✓ 200 agronomy centers benefiting 800,000+ farmers ✓ 2 MM+ farmers empowered through Krish e app ✓ 100,000+ e3Wheelers improving lives of com
Slide 6: Our Sustainability Commitment
O U R S U S TA I N A B I L I T Y C O M M I T M E N T M&M Auto: Net-Zero by 2040 Decarbonize Industries F23 (A) F25 F30 F35 F40 Reduce Scope 3 emissions Net Zero Carbon1 • Science Based Target set for 30% reduction in intensity by F34 (vs F19) Scope 1+2 % vs (-) 43% (-) 47% (-) 60% (-) 70% (-) 80% Ro
Slide 7: M&M History of Value Creation
M&M HISTORY OF VALUE CREATION 6
Slide 8: M&M Best performing stock in NIFTY 50 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 9: Accelerated Trajectory: PAT Lens
A C C E L E R AT E D T R A J E C T O R Y 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 8 * After Exceptional Items after Non-Controlling Interest 8 8 ^ PAT after EI for
Slide 10: Accelerated Trajectory by Segment
A C C E L E R AT E D T R A J E C T O RY 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 T
Slide 11: Value Creation Accelerated in FY23
VA L U E C R E AT I O N … A c c e l e r a t 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 th
Slide 12: Our Path to Value Creation
OUR PATH TO VALUE CREATION FY23 FY22 FY21 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 11 11 115
Slide 13: 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 12 * 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 12 ^ In
Slide 14: Pivot to Growth: Transforming the Core
PIVOT TO GROWTH … Transforming the core Actions Outcome • 5 mega launches…Quantum leap UV revenue MS: 13.2% → 19.6% • Regaining EV leadership; $9.1 Bn valuation (Q4F20) (Q4F23) Auto • Strengthened leadership through new launches and network expansion Market share: 39.4% → 40.7% Transform (Q4F20) (Q4
Slide 15: Pivot to Growth: Growth Gems
PIVOT TO GROWTH … Gems Deep Dive: FY22 & FY23 – …and establishing growth gems Progress made so far Valuation¹ ($ 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 w
Slide 16: Reignited Value Creation: We Delivered
REIGNITED VALUE CREATION We delivered, and built foundation for growth Return on Equity EPS Market cap* in INR in INR '000 Cr. +6.1 pts 19.9% 1.9X 92 144 1.7X 13.8% 49 99 84 4.4% 16 FY19 FY21^ FY23 FY19 FY21^ FY23 FY19 FY21 FY23 Enablers Data & Customer Purpose Talent Synergy Technology Experience 1
Slide 17: M&M Path Forward
M&M PATH FORWARD mahindra
Slide 18: 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 17 17 17
Slide 19: 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 20: 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 21: Mahindra Strategic Imperatives
MAHINDRA STRATEGIC IMPERATIVES FY24 - 26 FY22 - 23 FY21 Deliver Scale Market Leadership Pivot Resilience Capital to growth Allocation Value Creation 20 20 20
Slide 22: Deliver Scale: Capitalize on Market Leadership
DELIVER SCALE Capitalize on Unlock 5X Challenge for Market Leadership Full Potential Growth Gems SUVs LCVs 21 21 21
Slide 23: Auto: Strategic Imperatives
AUTO … Strategic imperatives Opportunity Strategic actions • SUV Love affair 56% 51% #1 1. Customer Obsessed Brands: Differentiated SUV brand Brand SUV as % 28% experience, innovative omni-channel models Power of PV 2. Propel ICE SUVs with cutting edge products: Turn-on Design, #1 FY19 FY23 FY26 Dem
Slide 24: Farm: Strategic Imperatives
FARM … Strategic imperatives Opportunity Strategic Actions • Domestic tractor industry will continue to grow Hp/ hectare 4.0 2.4 1. Build a domestic fortress through product launches 1.9 0.8 and channel expansion: FY15 FY20 FY23 Govt target1 • Grow market share • Industry-best profitability • Opport
Slide 25: Unlock Full Potential
UNLOCK FULL POTENTIAL MMFSL 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 partnerships Drive synergy from portfolio com
Slide 26: 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 27: Summary
SUMMARY Driven by Re-ignited Well positioned to Committed to Purpose Value tap India Deliver Scale Creation Opportunity 26 26 26
Slide 28: Thank You
THANK YOU 23 9 27
Slide 29: M&M Standalone F23
M & M S TA N D A L O N E F 2 3 Rs Cr Revenue PAT before EI* PAT after EI 84,960 47% 57,787 7,770 52% 6,549 34% 5,120 4,870 F22 F23 F22 F23 F22 F23 28 * PAT before EI (net of taxes) 28 28
Slide 30: Mahindra Finance & Tech Mahindra
MAHINDRA FINANCE & TECH MAHINDRA Rs Cr Revenue PAT Highlights TechM 19% ▪ TCV of $2.9Bn+ … soft market demand 53,290 44,646 (13)% ▪ Improved free cash flow conversion 5,566 4,831 ▪ Margins under pressure F22 F23 F22 F23 Disbursements PAT Highlights 80% MMFSL 49,541 ▪ Highest ever disbursements; AUM
Slide 31: Growth Gems (Listed)
GROWTH GEMS(LISTED) Rs Cr Rs Cr Logistics* Hospitality Real estate 155 115 71% (35)% 101 PAT PAT PAT 68 50% 18 26 F22 F23 F22 F23 F22 F23 ▪ Crossed 5K of revenue 24%; ▪ Membership sales 70%; member ▪ Record pre-sales of 1,812 Cr EBITDA margin 60 bps adds at 17.5K & upgrades ▪ Foray into societ
Slide 32: M&M Standalone Cash Flow F23
M & M S TA N D A L O N E C A S H F L O W F 2 3 Rs Cr Rs Cr RsCr Rs Cr Auto and Farm Group companies Total Opening Balance 12,099 6,228 + Inflow 9,659 3,018 12,677 - Capex (3,431) (3,431) - Capital deployed (2,890) (262) (3,152) Net cashflow (incl. invt) 3,338 2,756 6,094 - M&M Debt repayment & other
Slide 33: 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