Mahindra & Mahindra Ltd. · NSE:M&M
Mahindra & Mahindra — Non-Deal Roadshow (May 2024)
24 slides from Mahindra & Mahindra's roadshow presentation, May 2024
Slide 1: Delivering Scale Investor Presentation May 2024
Mahindra & Mahindra Limited Delivering Scale Investor Presentation May 2024 1
Slide 2: Governance Guidelines
Governance Guidelines o No UPSI will be shared during the meeting including sensitive financial data, future business strategies, or any information that could potentially impact the price of our company's securities. o We shall not be discussing any specific financial figures or divulging future bu
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 4 4 4 45
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 5 * After Exceptional Items after Non-Controlling Interest 5 5 ^ 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 6 6 65
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 7 * 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 7 ^ 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 11 11 11
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 16 16 16
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 17 8 17
Slide 18: Capitalize on market leadership: Auto & 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 & Tech M
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 21 21 18
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 22 22 19
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 24