March, 2012 Mahindra & Mahindra 2 India - Fast, Sustained and - PowerPoint PPT Presentation

March, 2012 Mahindra & Mahindra

2 India - Fast, Sustained and Stable Growth Story  GDP growth F10 – 8.4% 8.4% F11 - 8.4 % F12E – 6.9 % <GOI’s first GDP estimate for FY12>  An exponential increase in the consumer class  Maturing Economy Shift from Agriculture & Manufacturing to Services Stable: Forex reserves at US$ 293.75 billion (As on Feb. 3,‘12 – RBI) Mahindra & Mahindra

3 The Indian Story Recent Developments Positives Positives 2011 Rainfall 102% of LPA  – Best in last 5 years in terms of Spatial Distribution – Food grain production at all time high  Political stability Concerns Concerns Concerns Concerns  Steadily deteriorating global macro environment  Policy inaction  Slowing growth  Business confidence Mahindra & Mahindra

4 Mahindra Group : A USD 14.4 bn Conglomerate with interests across the economic spectrum Farm Automotive Equipment Sector Sector Systems & IT Services Technologies Sector Sector Financial Others Services Sector Steel Trading Real Estate & & Processing Hospitality Infrastructure Sector Sector Sector Mahindra & Mahindra

5 Mahindra Group Business Leadership  Market leader in Utility Vehicles in India  Market leader in Agricultural Tractors in India. – Number One global manufacturer (Single legal entity )  Mahindra Finance : Leader in rural financing  Mahindra Finance : Leader in rural financing  Tech Mahindra : Leader in Telecom Software  Mahindra Holidays : Leader in ‘Time Share’ “Mahindra” – amongst India’s most innovative companies - Robert Tucker, Innovation Guru & President of The Innovation Resource (TIR) June 2011 Mahindra & Mahindra

6 Mahindra & Mahindra Ltd. Company at a Glance Equity Structure 26.9% Promoter & Promoter Group, 73.1% Public (35.9% Foreign) As at Sept 30, 2011 FY11 – US$5.7 bn, 9MFY12 – US$ 5.3 bn Gross Revenue FY11 – US$585 mn, 9MFY12 – US$ 446 mn Net Profit FY11 4W+3W–364,8341 (27.21%) FY11 4W+3W–364,8341 (27.21%) Tractors–213,653 (22.3%) Tractors–213,653 (22.3%) Sales (incl exports), vol. Sales (incl exports), vol. 9MFY12 4W+3W–305,476 (26.8%) Tractors–173,519 (19.3%) FY11 – Passenger UV – 52.6%, Tractors – 41.4% Market Share H1FY12 Passenger UV – 56.0%,Tractors – 42.4% Auto – 6, Tractors – 6 Plants Around 26,000 Manpower As of Dec. ‘11 – Total – 131, Operational – 70 Subsidiaries Mahindra & Mahindra

7 Financials For translation of ` to US$ a convenience translation at average of closing exchange rates for 12 months period ended 31st December 2011 has been applied. ended 31st December 2011 has been applied. Mahindra & Mahindra

8 Financials M&M + MVML Q3F12 9MF12 Gross Revenue (incl. other income) ` 9011 Cr. ` 24,609 Cr. 34% 31% US$ 1.9 bn US$ 5.3 bn ` 706 Cr. ` 2,086 Cr. Profit after Tax 16% 10% US$ 151 mn US$ 446 mn Operating margin Operating margin 13.8% 13.8% 13.7% 13.7% Gearing Ratio Debt : Equity 0.28 0.28 Mahindra Group ` 16,488 Cr ` 45,995 Cr Gross Revenue 61 % 63 % US$ 3.55 bn US$ 9.8 bn ` 832 Cr ` 2,176 Cr PAT after Minority Interest - 0.26% 1.5% US$ 178 mn US$ 466 mn Mahindra & Mahindra

9 Automotive Sector Automotive Sector Mahindra & Mahindra

10 10 Indian Auto Industry - Vehicle Sales M&HCVs LCVs UVs Cars 3,000,000 2,800,000 2,600,000 2,400,000 Total Industry CAGR Growth 2,200,000 CAGR 81 – 11 11.4% 2,000,000 CAGR 01 – 11 13.2% 1,800,000 1,600,000 1,400,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 - F-81 F-82 F-83 F-84 F-85 F-86 F-87 F-88 F-89 F-90 F-91 F-92 F-93 F-94 F-95 F-96 F-97 F-98 F-99 F-00 F-01 F-02 F-03 F-04 F-05 F-06 F-07 F-08 F-09 F-10 F-11 Source : SIAM Mahindra & Mahindra

11 11 Utility Vehicle Player in India * M&M Ltd. is the largest utility vehicle company in India SIAM data Mahindra & Mahindra

12 12 M&M Auto sales – Domestic + Export 377 Total AS Sales Total AS Sales (‘000) (‘000) 298 22% 231 230 178 178 149 145 117 87 65 F02 F03 F04 F05 F06 F07 F08 F09 F10 F11 Mahindra & Mahindra

13 13 9M – FY12 M&M – Industry Performance Industry M&M Market Share M&M Participating Segments 9M F12 Growth 9M F12 9M F11 Growth UVs 256,485 12.7% 143,632 122,527 17.2% 56.0% 53.8% MPVs 168,681 7.7% 18,381 76 NM 10.9% 0.0% LCV < 2T 180,083 33.5% 39,745 29,625 34.2% 22.1% 22.0% LCV > 2T and < 3.5T 75,507 30.7% 52,604 44,271 18.8% 69.7% 76.6% 3W 383,101 -0.1% 51,114 44,471 14.9% 13.3% 11.6% AD Total 1,063,857 10.8% 305,476 240,970 26.8% 28.7% 25.1% LCVs > 3.5T LCVs > 3.5T 72,174 72,174 13.7% 13.7% 7,580 7,580 8,028 8,028 -5.6% -5.6% 10.5% 10.5% 12.6% 12.6% MHCV (Goods) 211,153 12.2% 1,926 247 NA 0.9% NA Cars (Super Compact) 125,781 29.5% 12,915 6,720 NA 10.3% 6.9% AS (Domestic) 1,472,965 12.5% 327,897 255,965 28.1% 22.3% 19.6% Non Participating 1,286,503 -4.7% Total Industry (Dom) 2,759,468 3.8% 327,897 255,965 28.1% 11.9% 9.6% AD (Exports) 20,543 11,980 71.5% Logan (Exports) - - NA AS Total 348,440 267,945 30.0% Mahindra & Mahindra

14 14 International Markets Outperformance 43 43 % CAGR ( % CAGR (F03 F03 to to F11) F11) 20543 17150 12400 11980 11980 10600 10600 8500 8000 5500 3050 1600 1000 F03 F04 F05 F06 F07 F08 F09 F10 F11 9M F11 9M F12 No. of units exported Mahindra & Mahindra

15 15 GENIO DC NEW BOLERO XYLO Refresh XUV 500 has already bagged 20 awards since launch in Oct ‘11 … Mahindra & Mahindra

16 16 Products Time Line Maximmo – Passenger Van Q1 FY2013 Compact SUV Q3 FY2013 Rexton <Ssangyong> Q3 FY2013 REVA – NXR Q3 FY2013 Verito – Sub 4m Q4 FY2013 Mahindra & Mahindra

17 17 Financial Performance – AD + MVML Nine Months ending 31 st Dec. 2011 • Segment Revenue Rs. 13,386 crores (US$ 2.86 bn) 38% • Segment Results (EBIT) Rs. 1,470 crores (US$ 314 mn) Rs. 1,470 crores (US$ 314 mn) 10% 10% Mahindra & Mahindra

18 18 Going Forward… Key Challenges • General Sentiment about economy – High inflation – High financing rates – Fall in IIP • • Uncertainly of global environment Uncertainly of global environment – Volatility of Crude prices – Commodity prices • Fuel price hikes • Fuel policy of Government • Currency movements Mahindra & Mahindra

19 19 Going Forward… M&M Initiatives - Auto  New launches  Synergies with Ssangyong  Ramp up MHCV Ramp up MHCV  Mahindra Reva  Customer satisfaction  Cost management initiatives Mahindra & Mahindra

2 0 SIAM F13 Outlook Segment F13 Growth Cars 11 – 13% UVs 13 – 15% Vans 10 – 12% PV Total 11 – 13% LCV Goods 16-18% MHCV Goods 5-7% Passenger 4 – 6% Buses* Total CV 12 – 14% 2W 11 – 14% 3 W Goods 3 – 5% 3W Passenger 7 - 9% 3W Total 6 – 9% Auto Total 10 – 12% Mahindra & Mahindra

21 21 Farm Equipment Sector Farm Equipment Sector Farm Equipment Sector Farm Equipment Sector Mahindra & Mahindra

22 22 Domestic Industry Historical Volumes No. of tractors CAGR : 15.0% 600000 (F73-F82) (F86-F92) (F94-F00) (F03-F11) 500000 CAGR: 8.5% 480377 400203 400000 318427 318427 303783 300000 258674 262621 302241 246404 228262 226105 214255 212732 200000 187675 175475 148219 160052 136376 100000 81629 59250 77636 89631 31964 22484 + 20% growth in F11 72106 64703 41782 0 F73 F75 F77 F79 F81 F83 F85 F87 F89 F91 F93 F95 F97 F99 F01 F03 F05 F07 F09 F11 Mahindra & Mahindra

23 23 * M&M Ltd. is the largest tractor company in the world, by volume Mahindra & Mahindra

24 24 Market Share Total no. of Tractors 400,203 480,377 409521 303,921 302,241 4.4 6.0 7.0 8.0 7.9 5.3 5.3 4.8 5.1 5.1 3.6 3.1 2.8 2.5 2.7 9.8 8.9 8.7 8.4 8.6 11.2 13.3 13.5 JD 14.7 13.2 FNH OTHERS 22.5 23.5 22.3 22.0 20.4 SONALIKA ESCORTS TAFE+EIC M&M 42.0 42.4 41.4 40.8 38.9 F-08 F-09 F-10 F-11 9M F-12 Source : TMA Mahindra & Mahindra

25 25 Combined ‘Mahindra & Swaraj’ 2200+ 1300 Dealers Service points 7 Mfg. Plants 6350 employees • 6 tractor plants • 1 foundry Mahindra & Mahindra

26 26 New Launch Mahindra & Mahindra

27 27 Customer Satisfaction Index 95 90 85 85 80 75 70 F04 F05 F06 F07 F08 F09 F10 * Taylor Nelson Sofres Mahindra & Mahindra

28 28 M&M Export Performance 13.8 % CAGR (F04 to F11) 11,812 8,733 9,850 8,837 6,981 7,525 8,533 6,933 4,769 5,385 F04 F05 F06 F07 F08 F09 F10 F11 9MF11 9MF12 No. of units exported Mahindra & Mahindra

29 29 Beyond Agriculture…. Mahindra & Mahindra

30 30 Range Expansion: 5kVA to 320 kVA 5kVA Nano DG set 320 kVA DG set Mahindra & Mahindra

31 31 Financial Performance – FES Nine Months ending 31 st Dec. 2011 • Segment Revenue Rs. 8,939 crores (US$ 1.91 bn) 29% • Segment Results (EBIT) Rs. 1,398 crores (US$ 299 mn) 13% Mahindra & Mahindra