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Mahindra & Mahindra Ltd. Mahindra Towers,
Dr. G. M. Bhosale Marg, Worli,
Mumbai 400 018 India
Tel: +91 22 24901441
Fax: +91 22 24975081
REF:NS:SEC: 7th August, 2020
National Stock Exchange of India Limited "Exchange Plaza", 5th Floor, Plot No.C/1, G Block Bandra-Kurla Complex Bandra (East), Mumbai 400051.
BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai 400001.
Bourse de Luxembourg Societe de la Bourse de Luxembourg Societe Anonyme/R.C.B. 6222, B.P. 165, L-2011 Luxembourg.
London Stock Exchange Plc 10 Paternoster Square London EC4M 7LS.
Sub: Chairman’s Presentation at the 74th Annual General Meeting We are enclosing a copy of the presentation being made by the Chairman at the 74th Annual
It was the best of times; it was the worst of times…
It was the season of light, it was the season of darkness;
It was the spring of hope, it was the winter of despair.
-Charles Dickens
MAHINDRA RISES TO FIGHT AGAINST COVID19
Produced and delivered
1.2 million Face Masks
Produced and delivered
400,000+ Face Shields
Produced and supplied
70,000+ litres of Hand
Sanitizer
Produced and delivered 600+
Aerosol boxes to 30+
Hospitals in India
Free Emergency Cab Services
launched in Nine cities.
3000+ customers served
Prepared a prototype of
Low Cost Ventilators
in just 5 days
Provided 300,000+
meals pan India50 Resorts pan India were
made available as Temporary
Care Facilities
THE WORST OF TIMES
322
120
56
M&M Share Price '00 - '02
2000 2001 2002
LEADERSHIP FINANCIAL
RETURNS
Blue Chip Mantras
INNOVATION GLOBALISATION
0
50
100
150
200
250
2002 2003
Mahindra Group Profits 2002 - 2003
(Rs.
Cro
res)
123
216
(Rs. Crores)
1717
216
451
724
1404
1855
1638
2891
3175 3060
123
2002 2003 2004 2005 20092008 2010 2011 2012 20132006 2007
Mahindra Group Profits4129
LEGACY OF VALUE CREATION
Year 2002 to 2018
Operating Cash Flow pre Capex (Rs Cr) 2,433
EPS CAGR 34%
Avg RoE 22%
F02-F18
EPS and RoE on consolidated basis
Cash Flow is Average per annum on standalone basis for M&M
M&M Closing Share Price1200
1000
800
600
400
200
0
INR
Rs. Crore
VALUE CREATION IN LISTED COMPANIES
Swaraj
Engines
Tech Mahindra MMFSL
Mahindra
Holidays
Returns include dividends, sale & market value of the holding on 31st Mar, 2020. Investment include both original cost and subsequent investments
▪From the Nifty constituents of 2002, M&M is
the best performing stock with a CAGR of
31%, while MTNL is the only stock to deliver
negative returns.
LEGACY OF VALUE CREATION
0
200
400
600
800
1000
1200
M&M Closing Share Price
Year 2002 to 2018
Operating Cash Flow pre Capex (Rs Cr) 2,433 5,210
EPS CAGR 34% (87%)
Avg RoE 22% 12%
F02-F18
EPS and RoE on consolidated basis
Cash Flow is Average per annum on standalone basis for M&M
CAGR: -54%
Aug 2018
2018-20
F18-F20
CACategory
Loss-making businesses/entities to be closely scrutinized & put under 3 categories, viz. A, B and C
B
Tighter Capital Allocation NormsACTION ON LOSS-MAKING SUBS
ContinueAction
Entities with clear path to
18% RoELogic
Delayed or unclear path to profitability
but quantifiable strategic impact
Unclear path to profitability
Continue
Exit (Explore partnership, alliance
or shut-down)
Aftermarket
Mahindra Electric
Mahindra Susten
MahindraAccelo
Powerol
Mahindra Rural Housing Finance
Mobility
HARNESS VALUE FROM POTENTIAL BILLION $ CANDIDATES
Mahindra: A gateway to
the largest and fastest
growing themes in IndiaClassic
Legends
Agri
M&M SHARE PRICE
Source: in.finance.yahoo.com; Closing price 30st of every month.
567.15
457.05
284.95
366.65
436.35
510.7
606.5
0
100
200
300
400
500
600
700
JAN-20 FEB-20 MAR-20 APR-20 MAY-20 JUN-20 JUL-20
SH
AR
E P
RIC
E (
RS
)
ALTERNATIVE THINKING
CORE VALUES
ACCEPTING NO LIMITS
DRIVING
POSITIVE CHANGEGOVERNANCE