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

1
June 2013
M&M Investor Presentation
2
Three Speed Economies
Phrase Courtesy : Christine Lagarde
3
All around us
US on Path of
Growth
Europe -
Contraction
Emerging
Markets -
Growing
External Factors
4
Political Uncertainty
Policy Action
GDP Growth
Current
Account
Deficit
Cost of
Borrowing
Investment
Slowdown
All around us
India story
FY 2014 will be crucial one to watch
5
Double-Edged Sword
Global
Domestic
6
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 a
presence in 18 Industries
7
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
8
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
9
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
Promoter
and
Promoter
Group
25.2%
FII / NRI /
GDR
44.1%
Insurance
Cos.
14.0%
FI / MF /
Banks
1.4%
Individuals
15.2%
10
Financials
11
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 like to like comparison, excluding one time benefit of Rs. 257
crores on account of MADPL merger from FY 2012 & 91 crs in FY 13 of
Exceptional Gain on sale of MHRIL shares
12
Financial Highlights
Growth in Total income
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 like to like comparison, excluding one time benefit of Rs. 257
crores on account of MADPL merger from FY 2012 & Rs. 91 crs in FY 13
of Exceptional Gain on sale of MHRIL shares
13
Strong Growth Trajectory
Gross Revenue & Other Income PAT
861
2,068
2,687
2,997
3,634
FY09 FY10 FY11 FY12 FY13
Figures on Standalone basis (M&M + MVML)
15,072
20,735
26,201
35,005
43,655
FY09 FY10 FY11 FY12 FY13
30%
43%
EBITDA
1,155
2,965
3,621
4,150
5,329
FY09 FY10 FY11 FY12 FY13
47%
8.8%
13.9%
Rs. Crs.
14
Strong Growth Trajectory
Gross Revenue & Other Income PAT after MI
1,405
2,479
3,080
3,127
4,099
FY09 FY10 FY11 FY12 FY13
Consolidated Accounts
28,992
33,790
39,864
63,358
74,403
FY09 FY10 FY11 FY12 FY13
27%
31%
EBITDA
3,163
5,015
5,449
6,245
7,449
FY09 FY10 FY11 FY12 FY13
24%
Rs. Crs.
15 Copyright 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
16
Original Investment Cost Vs. CMP
As on 31
st
, March 2013 Cost Market
Value
Listed Companies
Subsidiaries 2994 11,090
Associates 649 6,592
Total 3,644 17,683
Rs. Crs
17
Unlocking Shareholders Value Since 2005
Corporate Actions
Bonus Issue FY 2005 1:1
Stock Split FY 2011 1:2
18 Copyright 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 Ratio
M&M + MVML
Gearing Multiple
M&M + MVML
Stable Rating AA+ by
CRISIL/ICRA/CARE *
* Rating is for M&M Ltd (Standalone Company)
Healthy financial risk profile supported by considerable financial flexibility arising
from market value of investments - Crisil s Credit Rating Report, April 2013
19
Marathon Runner
Prudent Capital Allocation
Support growth with Strategic Acquisition
Maintain strong Credit Rating
Deliver long term shareholder value
20
PAT 963 911 5.7
M&M + MVML- FINANCIAL PERFORMANCE
F 2013
Q4
F 2012
Q4
% 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.
21
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 0.66
PAT 3,634 2,997 21.3
Adjusted PAT 3,544 2,740 29
Rs. Crs.
22
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.
23
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.
24
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
25
26
Rs. 4,099 crs
Rs. 3,127 crs
31%
Financial Highlights
Growth in Total income
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
27
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.
28
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.
29
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 crs
18%
MLDL
F13 Rs. 1,288 crs
F12 Rs. 1,096 crs
18%
TML
On Consolidated basis.
30
Systech
Revenue
4,988
5%
5,249
FY 13
FY 12
Systech
Results
(44)
120%
226
FY 13
FY 12
STP *
Revenue
1,416
5%
1,486
STP *
Results
88
28%
123
IT Services
Revenue
1,464
50%
2,904
IT Services
Results
222
48%
425
Segment Details
* STP Steel Trading & processing Segment Results is before Exceptional items
Rs. Crs.
31
Farm Equip.
Revenue
13,384
4%
13,283
FY 13
FY 12
Farm Equip.
Results
1,828
5%
1,925
FY 13
FY 12
Others
Revenue
2,850
15%
2,469
Others
Results
(295)
15%
(256)
Segment Details
Segment Results is before Exceptional items
Rs. Crs.
32
Automotive
Revenue
41,874
27%
32,838
FY 13
FY 12
Automotive
Results
2,330
101%
1,157
FY 13
FY 12
Fin. Services
Revenue
4,117
42%
2,901
Fin. Service
Results
1,284
35%
953
IDS
Revenue
754
5%
716
IDS
Results
243
23%
198
Hospitality
Revenue
727
13%
644
Hospitality
Results
141
7%
132
FY 13
FY 12
FY 13
FY 12
Segment Details
Segment Results is before Exceptional items
Rs. Crs.
33
Automotive Sector
34
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
2,200,000
2,400,000
2,600,000
2,800,000
3,000,000
3,200,000
3,400,000
3,600,000
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 Vehicle Sales
Total 4W Industry CAGR Growth
CAGR 83 13 10.6%
CAGR 03 13 13.6%
FY13 / FY12.2.0%
Source : SIAM
35
M&M Auto Sector sales Domestic + Export
87
117
145
149
178
231 230
298
377
483
563
F03 F04 F05 F06 F07 F08 F09 F10 F11 F12 F13
Total AS Sales (000)
21%
CAGR
36
*M&M Ltd. is the largest utility vehicle company in India
SIAM data
Utility
Vehicle
Player in
India
37
F13: Unique Year for UV industry
F13 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 %
Car
Growth
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 F13
UVs 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
38
20
L
5L 12.5L 15
L
10
L
7.4L 10.8L
8L 11.5L
12.3L
14.7L
18.5L 20.6L
6.7L 7.4L
5.9L 7.7L
Presence across all price points
39
6.2
L
1L
3L 4L
2L
3.4L
1.62L 1.69L
1.9L
5L
4.1L 4.5L
5.5L
5.5L 6.2L
3.7L
3.8L
3.7L
3.5L
Presence across all price points
40
FY2013 - Domestic Market Performance
Source : SIAM
F13 F13 F13 F12
Actual 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
Segment
M&M AS Industry M&M Mkt. Share
Growth Growth
41
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
29,176
32,456
F12 F13
F13
16,220
14,226
H2 F12 H2 F13
H2 F13
12%
40%
11%
42
SYMC
Kor ando Tur ismo
Rext on W
Kor ando C
CY12 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 CY13 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 Bill
2. 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 workers legal case of KRW 5.8 Bill
43
Customer Satisfaction Performance
JD Power
2012 IQS
JD Power
2012 CSI
TNS
2012 TCS
Most improved brand for
2012
5
th
Rank (11
th
in 2011)
XUV500 ranked No. 1 with
Renault Duster
Bolero ranked No.1 with
Toyota Innova
First time M&M product is
under 100 PP100V
44
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 rural
areas across the country
45
Financial Performance AD + MVML
Q4FY2013 %YoY FY2013 %YoY
Segment Revenue
Rs. 7,163
38% Rs. 26,489 34%
Segment Results (after
exceptional items)
Rs.890 52%
Rs. 3,118
45%
Segment capital
employed
Rs. 6,167 20% Rs. 6,167 -
Rs. Crs.
46
SIAM F14 Outlook
Segment
F13 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%
47
Farm Equipment Sector
48
Domestic Industry Historical Volumes
CAGR : 15.0%
(F73-F82) (F86-F92) (F94-F00) (F03-F11)
No. of tractors
CAGR: 8.2% (F73 F13)
Source : TMA
22484 31964
41782
59250
77636
64703
81629
72106
89631
148219
136376
187675
212732
246404
258674
228262
214255
160052
175475
226105
262621
318427
302241
303783
400203
480377
535210
525970
0
100000
200000
300000
400000
500000
600000
F
7
3
F
7
5
F
7
7
F
7
9
F
8
1
F
8
3
F
8
5
F
8
7
F
8
9
F
9
1
F
9
3
F
9
5
F
9
7
F
9
9
F
0
1
F
0
3
F
0
5
F
0
7
F
0
9
F
1
1
F
1
3
49
M&M Ltd. is the largest tractor company in the world, by
volume
*
50
M&M Domestic Market Performance
41,282
44,807
60,005
78,048
95,006
90,509
113,269
166,359
202,513
221,730
211,596
F03 F04 F05 F06 F07 F08 F09 F10 F11 F12 F13
18%
CAGR
51
F13 : One of The Lows..
535210
525970
F12 F13
221730
211596
F12 F13
Industry
M&M
Continued Domination
FES MS : 40.2%
(Loss : 1.2% over PY)
52
Tractor Market Share
Total no. of Tractors
52
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
9.7
3.5
3.1 2.8
2.6 2.8
2.5
5.3
5.3
4.8
5.1
5.2
5.2
4.4
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
JD
FNH
Others
Sonalika
Escorts
Tafe+Eicher
Mahindra
400,203
302,241 303,921 480,377 525,970 535,210
Source : TMA
53
F13 : Exports
5,746
4,769
5,385
6,981
7,525
8,533
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
54
Customer Satisfaction Index
F08 F09 F10 F11 F12 F13
84
89
93 93
96
108
76
79
83
96
106
115
Mahindra & Swaraj : among Top 2 Brands
55
Beyond tractors
towards Farm Tech Prosperity
56
Powerol
870
1,000
F12 F13
Powerol Gross Revenue
(Rs. Crs)
Telecom
18%
Retail
34%
Service
35%
Exports
3%
Ind. Eng.
Apps
3%
HUPS
7%
Powerol Revenue Share
15%
57
Agri Business
182.9
343.5
F12 F13
Agri Business Revenue
(Rs. Crs)
88%
Agri
Inputs
28%
F&V
25%
MIS
47%
Agri Business Revenue Share
58
Financial Performance FES
Q4FY2013 %YoY FY2013 %YoY
Segment Revenue
Rs. 2,853
3% Rs. 11,990 3%
Segment Results (after
exceptional items)
Rs.456 5%
Rs. 1,858
1%
Segment capital
employed
Rs. 2,504 7% Rs. 2,504 -
Rs. Crs.
59
F14 : Industry Outlook
Industry expected to grow at 6 - 8%
60
Sustainability
Released annual sustainability reports since 2008 to map triple bottom line
performance
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 industries
cluster, in the Green Business Leaders award 2011-12 instituted by
Emergent Ventures India & Financial Express.
CII Sustainability Plus Rating:-
M & M rated no.1 in transport equipment sector in Gold category and
secured 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 top
200 Indian companies in the CDLI ratings for 2012.
61
Commitment to Society
The Mahindra Group
has pledged to dedicate
1% of its Profit after Tax to CSR
initiatives
62
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Copyright 2012 Mahindra & Mahindra Ltd. All rights reserved.
Thank you
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