Mahindra & Mahindra Ltd

Investor Presentation

November 2016

Dr. Anish Shah

Group President
(Strategy)

Economic Environment

Demonetization has significant long term benefits

GST progress healthy a big positive for India
Rural Economy looking up
Global issues still persist

 The Journey so Far

Recent Performance
Looking Ahead

Journey So Far

Market Cap
INR Cr

Group Market Cap

(Rs Cr)

154,510

1,434

6,583

F1995

F2005

MMFSL

M&M

75,196

F2016

MLDL

TechM

13,881

45,966

1,729
486
F2005

F2016

ClubM

3,432

5,764
F2005

356
F2016

Prices as on 31ST March

$ = INR 66.35

F2005
Book Value

486
F2016

F2005
Book Value

28
F2016

F2005
book value

F2016

Results Speak

CAGR as at 31st March 2016

LAST 25 YEARS
M&M

Sensex

Gold
$/Oz

Last 15 years

116.9 21%

21.0 13%

3.5

Gold $/Oz

5%

Sensex

Last 5 years

40.3

28%

1.7

12%

7.0

14%

1.3

5%

3.5

5%

0.9

-3 %

M&M

Revenues & profitability

Revenues (Consol)
(Rs Cr)

Revenues
(Rs Cr)

+21%

Revenues
(Rs Cr) +29%

+35%
26,494

83,207
953

10,635

405

F2005
F2005

6,554

F2016

F2005

F2016

F2016

PAT (Consol)
(Rs Cr)
Revenues
(Rs Cr)

+15%
3,206
682

Revenues
(Rs Cr)

+19%

+28%
1,604

127

F2016

F2005

877

106

F2005

F2016

F2005

F2016
6

Drivers of Performance
2005

2016

Early Stage

Established

Mature

1995

* Sep 2015

We are leaders in many businesses

8

We are driven by the highest standards in corporate governance

We will challenge conventional thinking and

innovatively use all our resources to drive positive
change in the lives of our stakeholders and
communities across the world, to enable them to
Rise.

United by a common purpose

10

 The Journey so Far

Recent Performance
Looking Ahead

11

M&M + MVML
Profits
(Rs Cr)

3,423

Profits
(Rs Cr)

-4%

Auto

3,298
+23%
2,215

Several new launches

Strong rural sentiment

GST positive for macro scenario

With 13.6% growth in PV, Mahindra

posted the highest volume growth in
H1FY17 among the Top 5 PV
industry players

SsangYong has turned around and

has been profitable in last four
consecutive quarters

1,803

Tractors
F15

F16

Revenue
(Rs Cr)

36,968

H1 16

H1 17

Revenue
(Rs Cr)

38,857

18,249

20,697

Strong monsoons

Record M&M mkt share in Q2F17

(43%)

Exports growth in South Asia

(SLBN), Africa

Strong performance of YUVO (>30

HP) & NUVO (>50 HP)

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Domestic Tractor Industry & M&M

Q2 Industry up by 27.6% .. M&M Volume up by 37.4%
H1 market share highest ever!
45%

M&M Market Share

42.6%

35%

37.4%

25%
15%

27.6%

Industry Growth
M&M Growth

5%
-5%

Q3 F13 Q1 F14 Q2 F14 Q3 F14 Q4 F14 Q1 F15 Q2 F15 Q3 F15 Q4 F15 Q1 F16 Q2 F16 Q3 F16 Q4 F16 Q1 F17 Q2 F17

-15%
-25%
-35%
-45%
13

Tech Mahindra
Consolidated Profits
(Rs Cr)

Consolidated Profits
(Rs Cr)

Diversified client base and

diversified geography with
presence in 90 countries

+19%

Deep capabilities across

verticals

3,118
2,628
+3%
1,403

1,440

Innovative and customer

centric solutions
Implemented Automation at
scale at some of our largest
customers

F15

F16

Consolidated Revenue
(Rs Cr)

22,621

26,494

H1 16

H1 17

Consolidated Revenue
(Rs Cr)

12,909

14,088

Industrialized solutions for

chatbots leveraging AI
Multiple strategic investments
Comviva, Complex, LCC,
SofGen, Mahindra
Engineering, Target, BIQ etc

14

Mahindra Finance
Consolidated Profits
(Rs Cr)

925

Consolidated Profits
(Rs Cr)

-15%
787

-15%
269

F15

F16

Consolidated Revenue
(Rs Cr)

6061

6598

H1 16

Leading NBFCs in India with a

diversified portfolio across asset
finance, SME lending, insurance
broking, rural housing and
distribution, etc.

Strong presence and brand

positioning in rural and semiurban footprint

De-growth in PAT due to

Change in NPA norm
Weak monsoon in F15 & F16

228

H1 17

Consolidated Revenue
(Rs Cr)

3084

3320

Digital, customer engagement

and branch expansion will drive
growth

15

Club Mahindra
Consolidated Profits
(Rs Cr)

+22%

Standalone Profits
(Rs Cr)

99

#1 leisure hospitality chain

(3000+ rooms) in India

#1 vacation ownership
company outside USA

Enable family vacations with

differentiated experiences

Continue to invest in capacity

creation: 450-500 rooms over
two years

Finland acquisition foundation

for international strategy

81

+17%

63

54

F15

F16

Consolidated Revenue
(Rs Cr)

830

1604

H1 16

H1 17

Standalone Revenue
(Rs Cr)

467

515

16

Mahindra Lifespaces
Consolidated Profits
(Rs Cr)*

266

Consolidated Profits
(Rs Cr)

-65%

Balanced business portfolio with

premium residential, integrated
cities and affordable housing

Pan-India presence with over 20

years of proven track record

Pioneers in sustainable
development

Leaders in corporate citizenship

RERA positive move

Unique approach towards

affordable housing with Happinest

167
93
99

+156%
F15

F16

50
19

One time profit from sale of land

Consolidated Revenue
(Rs Cr)

1148*

H1 16

H1 17

Consolidated Revenue
(Rs Cr)

877

302

261

* One time profit of Rs 269 Cr due to sale of land

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 The Journey so Far

Recent Performance
Looking Ahead

18

Digitize Operations
Kiosks

Transform with Technology

Tablets

Virtual
Showroom

Redefining the
customer experience

Blue Sense
XUV App

M&M Auto - Industry

first initiatives

Digital model for

insurance distribution
19

Illustrative

Technology Disruptions

Education
tech

Health
tech

Precision Predictive Payments Energy

agriculture intelligence
storage
tech

Autonomous
Tractors

Action

Smart
Telemedicine Homes

3D
Bank of
things printing

Cloud
Alternative
fuels

Virtual
stores

Autonomous cars

Mobile
internet

Robotics

Insurance
tech

Connected
car

Charging
tech

Mobility
service

Smart
Factories

Smart
Grid
Genomics

Semiconductors

Virtual
Reality

Drones

LOW

Smart
gadgets

Flying
cars

HIGH

Disruption
Source: Broker research, McKinsey, BCG, World Bank, Press Search, Sector discussions

20

Illustrative

Example: Illustration for agribusiness

Terrestrial
sensors

Action

Education
tech

Storage
tech

Precision
agriculture

Agri
chemicals

Biologicals

Farm to
home

Digital agri
inputs
Online
groceries

Irrigation
automation
Food ordering
platforms

Irrigation
control

Drones

Livestock
biometrics

Vertical
farming

LOW

HIGH

Disruption
Source: Broker research, McKinsey, BCG, World Bank, Press Search, Sector discussions

21

Synergy
2

Group CRM

One Mahindra for shared mobility

4

Specific project tie-ups

5

One sourcing

Coordinated approach to International reach

22

Leadership development
Values

Competencies

Fireside
Chats

Reflective
Conversation

Mentorship

mCODE

MLU

APEX
TALENT
COUNCIL

First Time
Manager

Leadership Programs
GMC

Top MBA Schools

Six Year Program

GPMD
Mid Career Leadership

FLP
Senior Leaders

Mahindra
Universe

GRP
Global Recruits

Women Leadership
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We aim to make Mahindra one of the 50

MOST ADMIRED global brands by 2021.
A brand that empowers people
to RISE to their dreams
and achieve their
full potential.

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