MandM Investor Presentation Handout July 2013 (1)

8/12/2019 MandM Investor Presentation Handout July 2013 (1)

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1Copyright 2012 Mahindra & Mahindra Ltd. All rights reserved. 1

June 2013

M&M Investor Presentation


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Three Speed Economies

Phrase Courtesy : Christine Lagarde


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All around us

US on Path ofGrowth

Europe -Contraction

EmergingMarkets -Growing

External Factors


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Political Uncertainty

Policy Action

GDP Growth

CurrentAccountDeficit

Cost ofBorrowing

InvestmentSlowdown

All around usIndia story

FY 2014 will be crucial one to watch


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Double-Edged Sword

Global Domestic


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Business Sectors

Automotive & Farm Equipment

Aftermarket

Hospitality

Mahindra Partners(Steel, Retail, Trade, Logistics, Boats, Energy, Media)

2 Wheeler

Systech

Information Technology

Real Estate

Defence Systems

Financial Services

The Mahindra Group comprises 10 business sectors with apresence in 18 Industries


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Mahindra Group

Market leader in Utility Vehicles in India

Market leader in Tractors in India.

Number One Global tractor manufacturer (Single legal entity)Mahindra Finance : Leader in rural financing

Tech Mahindra : Leader in Telecom Software

Mahindra Holidays : Leader in Time Share

Business Leadership


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Mahindra & Mahindra Ltd.

M&M is one of India's leading utility vehicle and tractor manufacturers

Market leader for FY13 both in UVs (market share 47.7%) and in

tractors (market share 40.2%)

Equity Structure of the company 25.2% Promoter & Promoter Group, 74.8% Public (44.2% Foreign)

As at March 31, 2013

Manufacturing plants all across India

Auto plants 6, Tractor plants 7, Foundry plant 1 Subsidiaries Total - 125 , Operational 41 As at March 31, 2013

Company Overview


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Life Insurance Corporation of India

Golboot Holdings Ltd (Goldman Sachs)

ICICI Prudential Life Insurance Ltd

First State Investments

Europacific Growth Fund

General Insurance Corporation of India

Government of Singapore

The New India Assurance Company Ltd

Vanguard Emerging Markets Stock Index

Fund

J P Morgan Group

Top 10 Shareholders with > 1%

Shareholding Pattern

Promoterand

PromoterGroup25.2%

FII / NRI /GDR

44.1%

InsuranceCos.

14.0%

FI / MF /Banks1.4%

Individuals15.2%


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Financials


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Financial Highlights

Growth in Total income

Rs 11,342 crs

Rs 10,334 crs

10%

Q4- FY13 Vs Q4- FY12 (M&M + MVML)

Rs 1,435 crs

Rs 1,092 crs

31%

Rs 963 crs

Rs 911 crs

6%

Growth in EBIDTA Growth in PAT

Rs 872 crs

Rs 654 crs

33%

Growth in PAT *

* On l ike to l ike com parison , exclud ing on e t ime benefi t of Rs. 257crores on accou nt of MA DPL merger from FY 2012 & 91 crs in FY 13 ofException al Gain on sale of MHRIL shares


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Rs 43,655 crs

Rs 35,005 crs

25%

FY13 Vs FY12 (M&M + MVML)

Rs 5,329 crs

Rs 4,150 crs

28%

Rs 3,634 crs

Rs 2,997 crs

21%

Growth in EBIDTA Growth in PAT

Rs 3,544 crs

Rs 2,740 crs

29%

Growth in PAT *

* On l ike to l ike com parison , exclud ing on e t ime benefi t of Rs. 257crores on accou nt of MADPL merger from FY 2012 & Rs. 91 crs in FY 13of Exceptio nal Gain on sale of MHRIL shares


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Strong Growth Trajectory

Gross Revenue & Other Income PAT

861

2,068

2,6872,997

3,634

FY09 FY10 FY11 FY12 FY13

Figures on Standalone basis (M&M + MVML)

15,07220,735

26,201

35,005

43,655


30% 43%

EBITDA

1,155

2,9653,621

4,150

5,329


47%

8.8%

13.9%

Rs. Crs.


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Strong Growth Trajectory

Gross Revenue & Other Income PAT after MI

1,405

2,479

3,080 3,127

4,099


Consolidated Accounts

28,99233,790

39,864

63,358

74,403


27%31%

EBITDA

3,163

5,0155,449

6,245

7,449


24%

Rs. Crs.


15/6215Copyright 2012 Mahindra & Mahindra Ltd. All rights reserved.

4.7

4.4

32.8

0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00

Gold

Sensex

M&M

Delivering consistent, long term value

Last 5 years

2.5

1.2

1.7

Note: Adjusted for Bonus & Stock-split

Ex Dividend price

Last 11 years

30.2

5.4

5.3

Last 21 years


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Original Investment Cost Vs. CMP

As on 31 st , March 2013 Cost MarketValue

Listed CompaniesSubsidiaries 2994 11,090

Associates 649 6,592Total 3,644 17,683

Rs. Crs


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Unlocking Shareholders Value Since 2005

Corporate Actions

Bonus Issue FY 2005 1:1

Stock Split FY 2011 1:2


18/6218Copyright 2012 Mahindra & Mahindra Ltd. All rights reserved.

Strong Credit Profile

0.81

0.45

0.32 0.37 0.3

F 2009 F 2010 F 2011 F 2012 F 2013

2.94

1.12

0.82 0.98 0.76

F 2009 F 2010 F 2011 F 2012 F 2013

DE RatioM&M + MVML

Gearing MultipleM&M + MVML

Stable Rating AA+ byCRISIL/ICRA/CARE *

* Rating is for M&M Ltd (Standalone Company)

Healthy financial risk profile supported by considerable financial flexibility arisingfrom market value of investments - Crisil s Credit Rating Report, April 2013


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Marathon Runner

Prudent Capital Allocation

Support growth with Strategic Acquisition

Maintain strong Credit Rating

Deliver long term shareholder value


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PAT 963 911 5.7

M&M + MVML- FINANCIAL PERFORMANCE

F 2013Q4

F 2012Q4

% Inc/ (Dec)

Gross Turnover 11,342 10,334 9.8

Net Sales & Op. Inc. 9,983 9,108 9.6

PBIT 1,309 978 33.8

OPM (%) 14.38 11.99 2.39

Adjusted PAT 872 654 33

Rs. Crs.


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M&M + MVML- FINANCIAL PERFORMANCE (full year)

F 2013 F 2012 % Inc/ (Dec)

Gross Turnover 43,655 35,005 24.7

Net Sales & Op. Inc. 38,357 31,370 22.3

PBIT 5,081 3,965 28.2

OPM (%) 13.89 13.23 0.66PAT 3,634 2,997 21.3

Adjusted PAT 3,544 2,740 29

Rs. Crs.


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M&M + MVML - BALANCE SHEET

F -2013 F -2012

Source of Funds

Shareholders Funds 15,055 12,219

Loan Funds * 4,464 4,544

Deferred Tax Liability 756 589

Total 20,275 17,352

* Includes current maturities of Long Term Liabilities

Rs. Crs.


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M&M + MVML - BALANCE SHEET

F -2013 F -2012

Application of Funds

Fixed Assets 7,747 6,889

Investments 10,894 9,474

Long Term Loans & Advances 2,562 1,734

Cash & Bank Balances 1,823 1,291

Proposed Dividend (891) (869)

Other Assets (Net) (1860) (1167)

Total 20,275 17,352

Rs. Crs.


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Key Ratios

Particulars F 2013 F 2012

OPM (%) 13.89 13.23

ROCE 26.79 24.95

Interest Coverage Ratio 16.08 14.11

Debt / Service Ratio 6.63 5.44

EPS (Basic) (Rs.) 61.63 50.98

Book Value (Rs.) 254.85 207.27


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Rs. 4,099 crs

Rs. 3,127 crs

31%



Rs. 74,403 crs

Rs. 63,358 crs

17%

M&M Consolidated

FY 13 vs. FY 12

Rs. 7,449

Rs. 6,245

19%

Growth in EBIDTA Growth in PAT after MI


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M&M Group Consolidated Results

# includes share in profits of Associates

F 2013 F 2012 % Inc/ (Dec)

Net Sales & Op. Income 68,735 59,398 15.7

PAT before MI # 4,129 3,060 34.9

PAT after MI 4,099 3,127 31.1

Rs. Crs.


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Subsidiary Company Results

# includes share in profits of Associates

F 2013 F 2012 % Inc/ (Dec)

Net Revenue 36,970 33,580 10%

PAT before MI # 389 132 195%

PAT after MI 359 199 80%

Rs. Crs.


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Group Companies Top 4 PAT Earners

F13 Rs.927 crs

F12 Rs.644 crs

44%

MMFSL

F13 Rs.91 crs

F12 Rs. 102 crs

MHRIL

(11%)

F13 Rs 141 crs

F12 Rs 119 crs18%

MLDL

F13 Rs. 1,288 crs

F12 Rs. 1,096 crs18%

TML

On Conso l ida ted b as is .

S t D t il


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Systech

Revenue4,988

5%

5,249

FY 13

FY 12

Systech

Results

(44)

120%

226

FY 13

FY 12

STP *

Revenue1,416

5%

1,486

STP *

Results

88

28%

123

IT Services

Revenue1,464

50%

2,904

IT Services

Results

222

48%

425

Segment Details

* STP Steel Trading & pro cessin g Segment Results is before Exception al i tems

Rs. Crs.

S g t D t il


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Farm Equip.

Revenue13,384

4%

13,283

FY 13

FY 12

Farm Equip.

Results

1,828

5%

1,925

FY 13

FY 12

Others

Revenue2,850

15%

2,469

Others

Results

(295)

15%

(256)

Segment Details

Segment Results is before Exception al i tems

Rs. Crs.

Segment Details


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Automotive

Revenue41,874

27%

32,838

FY 13

FY 12

Automotive

Results

2,330

101%

1,157

FY 13

FY 12

Fin. Services

Revenue4,117

42%

2,901

Fin. Service

Results

1,284

35%

953

IDS

Revenue754

5%

716

IDS

Results

243

23%

198

Hospitality

Revenue727

13%

644

Hospitality

Results

141

7%

132

FY 13

FY 12

FY 13

FY 12

Segment Details

Segment Results is before Exception al i tems

Rs. Crs.


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Automotive Sector


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-200,000400,000600,000800,000

1,000,0001,200,0001,400,0001,600,0001,800,0002,000,000

2,200,0002,400,0002,600,0002,800,0003,000,0003,200,0003,400,0003,600,000

F - 8

3

F - 8

4

F - 8

5

F - 8

6

F - 8

7

F - 8

8

F - 8

9

F - 9

0

F - 9

1

F - 9

2

F - 9

3

F - 9

4

F - 9

5

F - 9

6

F - 9

7

F - 9

8

F - 9

9

F - 0

0

F - 0

1

F - 0

2

F - 0

3

F - 0

4

F - 0

5

F - 0

6

F - 0

7

F - 0

8

F - 0

9

F - 1

0

F - 1

1

F 1 2

F 1 3

Series4 Series3 Series2 Series1

Indian Auto Industry Veh i c le Sal es

Total 4W Industry CAGR GrowthCAGR 83 13 10.6%CAGR 03 13 13.6%

FY13 / FY12.2.0%Source : SIAM


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M&M Auto Sector sales Dom est ic + Expo r t

87117

145 149178

231 230

298

377

483

563

F03 F04 F05 F06 F07 F08 F09 F10 F11 F12 F13

Total AS Sales (000)

21%CAGR


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* M&M Ltd. is the largest utility vehicle company in IndiaSIAM data

Utility

Vehicle

Player in

India


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F13: Unique Year for UV industryF13 likely to repeat for next two years

-6.7%

52.2%

-20.0%

-10.0%

0.0%10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

F02 F03 F04 F05 F06 F07 F08 F09 F10 F11 F12 F13

Car Vs UV Growth %

CarGrowth

30.5%

52.2%

-20.0%

-10.0%

0.0%10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

F02 F03 F04 F05 F06 F07 F08 F09 F10 F11 F12 F13

M&M Vs Industry Growth %

M&M UV Growth

UV Industry Growth

F02 F13UVs available 16 40

UVs (MNC make) 2 25

Price range (Rs. Lac) 4 - 8 5 25

UV / (UV + Cars) 17% 23%

Increased Focus on the UV market

57.5%

42.5%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

F02 F03 F04 F05 F06 F07 F08 F09 F10 F11 F12 F13

Changing Dynamics of UV Segment

Indian OEM Share

MNC OEM Share

Source: SIAM, Industry


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2 0L

5 L 1 2 .5 L 1 5L

1 0L

7 .4 L 1 0 .8 L

8 L 11 .5L

1 2 . 3 L 14 .7L1 8 .5 L 2 0 .6 L

6 .7L 7 .4L

5 .9 L 7 .7 L

Presence across all price points


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6 .2L

1 L 3 L 4 L2 L

3 .4L

1 .62L 1 .69L

1 .9L

5 L

4 .1L 4 .5L

5 .5L

5 .5L 6 .2L

3 .7L 3 .8L

3 .7L3 .5L

Presence across all price points


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FY2013 - Domestic Market Performance

Source : SIAM

F13 F13 F13 F12Actual Actual Actual Actual

UV Total 263,925 30.5% 553,660 52.2% 47.7% 55.6%Cars (Verito) 15,344 -14.0% 226,501 21.1% 6.8% 9.5%Vans Total 31,437 22.6% 237,298 1.1% 13.2% 10.9%SCV < 2T 39,911 -25.9% 247,426 -1.4% 16.1% 21.5%2T > LCV < 3.5T 102,885 40.7% 190,447 72.9% 54.0% 66.4%3W Total 65,510 -2.9% 538,291 4.9% 12.2% 13.1%

LCV > 3.5 T Total 8,925 -13.6% 87,014 -12.2% 10.3% 10.4%MHCV (>16.2 T) 2,977 -14.7% 116,123 -32.2% 2.6% 2.0%

Auto Indsustry & M&M - FY13 / FY12

SegmentM&M AS Industry M&M Mkt. Share

Growth Growth


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F13: M&M International Market Performance

F13 Concern Markets Sri Lanka 18% Mkt. drop + duty impact

Bangladesh 63% Mkt. drop

Bhutan 77% Regulation for import payment

F13 Growth Markets South Africa 57%

Chile 48%

Nepal 47%

High growth in H1, Slowdown in H2

12,956

18,190

H1 F12 H1 F13

H1 F13

29,17632,456

F12 F13

F13

16,22014,226

H2 F12 H2 F13

H2 F13

12%40%

11%


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SYMC

Korando Turismo

Rexton W

Korando C

CY 12 CY11 Growth

Volume (No.) 120,717 113,001 6.8%

Revenue 3,010.5 2,912.1 3.4%

PBDIT 39.0 (31.3) -

PBT (106.1) (112.4)

Q1 CY 13 Q1 CY12 Growth

Volume (No.) 31,265 26,441 18.2%Revenue 782.6 675.6 15.8%

PBDIT 23.1 0.8 -

PBT (9.8) (31.6) -

Bn KRW

Bn KRW

1. CY 12 PBDIT before provision of unpaid leave workers legal case of KRW 15.6 Bill2. CY 11 PBT includes KRW 49 Bill income from creditors write back as per rehabilitation plan

1. Q1 CY 13 PBDIT before provision of unpaid leave worker s legal case of KRW 5.8 Bill


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Customer Satisfaction Performance

JD Power 2012 IQS

JD Power 2012 CSI

TNS2012 TCS

Most improved brand for2012

5 th Rank (11 th in 2011)

XUV500 ranked No. 1 withRenault Duster

Bolero ranked No.1 withToyota Innova

First time M&M product isunder 100 PP100V


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Presence in every nook and corner

Sales Network 1232 Service Network - 1371

Network reaching more than 70% of the districts in India

Total of 1,300 up-country outlets in 900 towns/semi-urban and ruralareas across the country


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Financial Performance AD + MVML

Q4FY2013 %YoY FY2013 %YoY

Segment Revenue Rs . 7,163 38% Rs . 26,489 34%

Segment Results (afterexceptional items)

Rs .890 52% Rs . 3,118 45%

Segment capitalemployed

Rs . 6,167 20% Rs . 6,167 -

Rs. Crs.


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SIAM F14 Outlook

SegmentF13 Actual Growth F14 Growth (Est)

(as on Apr-13)Cars -6.70% 3-5%UVs 52.20% 11-13%Vans 1.10% 4-6%

PV Total 2.20% 5-7%LCV Goods 15.90% 10-12%

MHCV Goods -25.90% 1-3%Passenger

Buses -4.10% 6-8%2W 2.90% 6-8%

3 W Goods -9.20% 2-4%3W Passenger 8.60% 3-5%

3W Total 4.90% 3-5%Total Industry 2.60% 6-8%


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Farm Equipment Sector


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M&M Ltd. is the largest tractor company in the world, byvolume

*


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M&M Domestic Market Performance

41,282 44,80760,005

78,04895,006 90,509

113,269

166,359

202,513

221,730211,596

F03 F04 F05 F06 F07 F08 F09 F10 F11 F12 F13

18%

CAGR


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F13 : One of The Lows..

535210525970

F12 F13

221730 211596

F12 F13

Industry M&M

Continued Domination

FES MS : 40.2%

(Loss : 1.2% over PY)

k h52


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Tractor Market ShareTotal no. of Tractors

38.9 40.8 41.4 42.0 41.4 40.2

23.5 22.3 22.0 20.4 23.4 25.0

14.7 13.5 13.3 13.2 11.4 11.7

9.8 8.9 8.7 8.6 8.3 9.73.5 3.1 2.8 2.6 2.8 2.55.3 5.3 4.8 5.1 5.2 5.24.4 6.0 7.0 8.0 7.5 5.7

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

F08 F09 F10 F11 F12 F13

JDFNHOthersSonalikaEscortsTafe+Eicher

Mahindra

400,203 302,241 303,921 480,377 525,970 535,210

Source : TMA


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F13 : Exports

5,7464,769

5,385

6,981 7,5258,533

6,933

8,837

11,812

13,722

12,289

F03 F04 F05 F06 F07 F08 F09 F10 F11 F12 F13

Degrowth in SAARC Countries


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Customer Satisfaction Index

F08 F09 F10 F11 F12 F13

84

89

93 9396

108

7679

83

96

106

115

Mahindra & Swaraj : among Top 2 Brands


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Beyond tractors towards Farm Tech Prosperity


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Powerol

870

1,000

F12 F13

Powerol Gross Revenue(Rs. Crs)

Telecom18%

Retail34%

Service35%Exports3%

Ind. Eng. Apps

3%

HUPS7%

Powerol Revenue Share

15%


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Agri Business

182.9

343.5

F12 F13

Agri Business Revenue(Rs. Crs)

88%

AgriInputs28%

F&V25%

MIS47%

Agri Business Revenue Share


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Financial Performance FES

Q4FY2013 %YoY FY2013 %YoY

Segment Revenue Rs . 2,853 3% Rs . 11,990 3%

Segment Results (afterexceptional items)

Rs .456 5% Rs . 1,858 1%

Segment capitalemployed

Rs . 2,504 7% Rs . 2,504 -

Rs. Crs.


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F14 : Industry Outlook

Industry expected to grow at 6 - 8%

S i bili


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SustainabilityReleased annual sustainability reports since 2008 to map triple bottom lineperformance

Received A+ rating which is externally assured

Ranked 1 st in S&Ps ESG India Index -2012

One of the top rankers in the Asian Sustainability Ratings (ASR)

Winner in the automobiles category, under the Energy Intensive industriescluster, in the Green Business Leaders award 2011-12 instituted byEmergent Ventures India & Financial Express.

CII Sustainability Plus Rating:-

M & M rated no.1 in transport equipment sector in Gold category andsecured 9 th place out of total 100 rated companies. In the year 2012.

Carbon Disclosure Leadership Index:-

M&M Limited was rated with a second highest score of 82 among the top200 Indian companies in the CDLI ratings for 2012.


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Commitment to Society

The Mahindra Group

has pledged to dedicate

1% of its Profit after Tax to CSR

initiatives


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Disclaimer

Mahindra & Mahindra here in re ferred to as M&M, and its subsid iary companies provide a wide array of presenta tions andreports, with the contributions of various professionals. These presentations and reports are for informational purposes and privatecirculation only and do not constitute an offer to buy or sell any securities mentioned therein. They do not purport to be a completedescription of the markets conditions or developments referred to in the material. While utmost care has been taken in preparing theabove, we claim no responsibility for their accuracy. We shall not be liable for any direct or indirect losses arising from the use thereof and the viewers are requested to use the information contained herein at their own risk. These presentations and reports should notbe reproduced, re-circulated, published in any media, website or otherwise, in any form or manner, in part or as a whole, without theexpress consent in writing of M&M or its subsidiaries. Any unauthorized use, disclosure or public dissemination of informationcontained herein is prohibited. Unless specifically noted, M&M or any of its subsidiary companies is not responsible for the content of

these presentations and/or the opinions of the presenters. Individual situations and local practices and standards may vary, soviewers and others utilizing information contained within a presentation are free to adopt differing standards and approaches as theysee fit. You may not repackage or sell the presentation. Products and names mentioned in materials or presentations are the propertyof their respective owners and the mention of them does not consti tute an endorsement by M&M or its subsidiary companies.Information contained in a presentation hosted or promoted by M&M is provided as is without warranty of any kind, either expressedor implied, including any warranty of merchantability or fitness for a particular purpose. M&M or its subsidiary companies assume noliability or responsibility for the contents of a presentation or the opinions expressed by the presenters. All expressions of opinion aresubject to change without notice.

Thank youVisit us at www.mahindra.com

MandM Investor Presentation Handout July 2013 (1)

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