ESG @ Mahindra

3rd April, 2018 ESG Con-Call Mahindra & Mahindra Limited

1 ESG @ Mahindra

Mr. V.S. Parthasarathy Group CFO, Group CIO

2 A message from Mr. Anand Mahindra

“When our Company first went public, K. C. Mahindra set aside some shares for the Company’s employees. When several employees wrote to thank him, he acknowledged their affection and thanked them in a memo which stated, “It’s nice to have money, but it’s nicer to have the things that money can’t buy.” So,. from very early in our history, Mahindra has stood for many things that money can’t buy. And the most important among the things that money can’t buy, is reputation.”

3 Governance is in the Mahindra DNA

Governance refers to structures & processes designed to ensure accountability, transparency, responsiveness, rule of law, stability, equity and inclusiveness, empowerment, & broad-based participation. - UNESCO

Corporate citizenship involves meeting social, legal, ethical and economic responsibilities

-Investopedia

Good Corporate Citizenship is synonymous with Good Governance

4 Governance & Profitable Growth Track Record Very few companies, Domestic or International, can claim responsible and profitable growth. M&M is a rare exception.

Value creation track Governance track record record (few examples)

 As per Regulations, at least half of board of directors Last 25 years1 Last 10 Last 5 in a listed Co shall be independent directors. At years years M&M, we have 70% independent directors in the M& board. 85.3 3.5 13. 1.6 10 M 3% % 19  Audit Committee of M&M was constituted in 1987, % whereas Listing Regulations required listed Sens 13.411 5.3 12 % 1.7 1.7 companies to form Audit Committee only from 2004. ex % %  Companies Act, 2013 introduced CSR spending of Gold 3.9 6% 2% of net profits. M&M had, suo moto, authorized $/Oz 1.6 4.6 0.8 -5 % % donations to charitable and other institutions in 1995 Gold $/Oz Sensex M&M and in 2005 decided to spend up to 1% of the profits for CSR initiatives.  …... There many such examples……

1 - As on 31 December 2017 5 Governance e-Cockpit - The Mahindra Journey

Mahindra Governance e- Cockpit imparts: Constituents a. Accountability, b. Transparency, c. Responsiveness, Board of Shareholders Directors d. Rule of law, F e. Stability, and f. Empowerment Other KMPs in interactions between key stakeholders constituents of the Governance Process, within the overall regulatory framework.

6 The three “C”s of the process of Governance

Roots of Governance To institutionalize Governance as a process, every Conflict of Interest Eradication point of decision making needs to be tested for the following 3 “C”s:

 Competence – Competency is the cornerstone of every managerial action and the process of Governance is no different. Training is a useful tool In this regard.

 Compliance – Without the attitude to follow the law the process of Governance will fail. Governance  Conflict of Interest Eradication – Conflict removal is the “soul” of Governance and is at the very core of Governance process. Compliance Competency

7 Conscious Capitalism Profit with Purpose - The Mahindra Rise Way

Adding the 4th “P” to People, Planet, Profit + Process

The Mahindra Rise Current Way

Gover People Planet Profit Process People Planet Profit nance

Purpose Governance Purpose Process

8 Getting ready for tomorrow, Today !

9 BSVI Preparedness

Diesel Engine Platforms

• Exhaustive range of diesel engines

• Company well poised to meet BSVI deadline

10 BSVI Preparedness

Gasoline Engine Platforms

• M&M currently has 2 gasoline engines. Intends to add 4 more options.

• Engine capacities fungible between diesel & gasoline engines

11 Electric Vehicles Vision 2030 Tomorrow’s Movement, Today

12 Leading the way Shared and Mass Mobility

Baghirathi order for 1000 OLA – Partnership for shared Zoomcar launched in Mysore Uber and M&M Partnership vehicles in Bangalore mobility in Nagpur and Hyderabad announced

HRTC – Clean Public EESL Tender for 10,000 vehicles Transportation Lithium- Corporate Employee Commuting

13 Mahindra first mover advantage

>68.2 Mn ekms Already invested 600 cr. in EV technology, product, capacity and 2010 – till date supplier end investment

4000+ vehicles on road

50+ Patents Market Strategic penetration (48V – 650V) partnerships and pilots 10+ years • Brand recognition, • Technology of Li-ion in India 51 experienced optimisation for dealerships Indian context 18+ cities across the country

Faster time to market High Quality Cost competitive

14 New Product Portfolio

LOW VOLTAGE HIGH VOLTAGE

Product eAlfa mini eRick TREO e2OPlus e-Supro e-Verito e-KUV Model 1 Model 2 eCosmo Bus 2 line-up Rickshaw Auto . Hatchback Minivan Sedan SUV SUV Sedan Bus

Seating 4 Adults D+32 capacity D+4 D+4, D+3 D+7 D+4 D+4 D+4 D+4 D+40 Range 140 kms 100 kms (km) 85 kms 80-100 kms 140 kms 120 kms 250 kms 156 kms 150 kms

Top speed 25 km/h 25-45 km/h 80 km/h 85 km/h 100 km/h 150 km/h 110 km/h 70 km/h

Voltage 12 V 48 V 72 V 380 V 650 V Battery Lead Acid Chemistry LFP NMC LFP Motor peak 1.5 kW < 5 kW power 19 kW 30 kW 90 kW 50 kW 165 kW

Current product Upcoming product

15 Sustainability @ Mahindra

Mr. Ulhas Yargop Group President - IT Sector, Group CTO, Chairman - Group Sustainability Council

. Mahindra Sustainability Framework . Leadership in Sustainability . Awards and accolades . Governance Structure for Sustainability . Building Enduring Business . Rejuvenate the Environment

17 18 Leadership in Sustainability

Mr. Anand Mahindra, a co-Chair in California’s Governor

Brown ‘The Global Climate Action Summit’ in September’18 19 Leadership in Sustainability

Mr. Anand Mahindra issued the ‘Call to Action’ to all businesses to adopt Science Based Targets in alignment to the Paris agreement at World Economic Forum, Davos

20 Leadership in Sustainability

Mahindra Holidays becomes first hospitality Founder member of Sustainable Housing company in the world to sign EP 100 Leadership Consortium (SHLC) led by IFC

Founder members at World bank’s CPLC Tech Mahindra topper in CDP and Dow Jones and declared Carbon Price of $10 disclosures; M&M and MMFSL do well

21 Awards in Sustainability

. Tech Mahindra has been awarded the highest ranking ‘A’ and identified as a global leader for Supplier Engagement by CDP . Mahindra Holidays won the prestigious Golden Peacock Environment Management Award 2017 received in London in October ‘17 . AD Zaheerabad bagged the 2nd Prize at the National Energy Conservation Award by the Ministry of Power, Govt. of India. . M&M (Igatpuri) won the Global Sustainability Award (Platinum Rating) and Best Sustainability Initiative Pavilion at The World Renewable Energy Congress organized by The Energy and Environment Foundation and supported by MNRE

22 Awards in Sustainability

. 6 M&M plants have won CII National Energy Conservation Awards and CII National Water Management Awards . Mahindra Lifespaces won the prestigious Golden Peacock Environment Management Award. . Mahindra Susten bagged Gold Award in Category- Solar O&M contractor of the year – Utility Scale @ RE assets 2017 Solar Awards . Mahindra Racing Formula E Team awarded the second highest level of FIA Institute Sustainability Accreditation.

23 Governance Structure for Sustainability

Board Committee For Corporate Social Responsibility Set direction for promoting the CSR agenda for M&M Ltd. and all Group Companies

Group CSR Council Group Sustainability Council Approves & monitors spends of CSR Approves new initiatives and monitor progress of activities/projects as per the mandates from the integration of the ESG parameters in Business & Board Committee Operations

Management of Group Sustainability Cell large & long term Management and • Drives sustainability through awareness & projects through coordination of knowledge building across the Group the various employee • Supports individual businesses in integrating foundations across volunteerism Sustainability in strategic business processes the Group and operations • Makes all external disclosures

Group CSR and Group Sustainability Councils Sector Sustainability Champions are high powered councils comprising of Located at all plants/offices to locally drive & CEO/CXOs and members of the Group monitor various initiatives, collects data for Executive Board reporting 24 Building Enduring Business

25 Grow green revenue: $ 400 million+ Portfolio of Electric Vehicles

26 Grow green revenue: $ 400 million+

Clean Energy

Green housing

Micro Irrigation

Automotive Recycling

27 Rejuvenating the Environment

Auto, Farm Committed & Holidays to go 100% businesses LED

6% $10 Carbon Achieved! Price

29 Becoming Water Positive

Integrated Watershed Management: 2.35X increase in income for 20,000; Saving 30-40% Water for 12X of water consumption Irrigation harnessed by Mahindra

30 Ensure no waste to landfill

Igatpuri Plant: 1st certified Zero Waste to Landfill location in India & 2nd in the World

31 Waste to Energy at Mahindra World city Input : 400 kg of CNG grade fuel is Segregated Food-waste produced daily and it can 10 tons/day propel our tourister buses (Provided by MWC) 2800 km/ day

Bio Gas Plant

4 tons of organic manure is produced daily

Mahindra World City – A Carbon Neutral Ecosystem 32 Few Innovations in Waste Management

33 Scrap Metal to Transformer Core

34 Foundry Waste Sand to River Sand

35 Kitchen Waste to Fertilizers

36 Waste to Energy

37 Paint Sludge as Fuel to Cement Plant

38 Promote Biodiversity

Membership and Reduction in Dust Advocacy levels by 50%

39 Enabling Stakeholders to Rise

Mr. Rajeev Dubey Group President (HR & Corporate Services) & CEO (After-Market Sector)

http://www.mahindra.com/riseforgood

. Diversity & Inclusion . Talent Management . Great place to work . Internal governance policies . CSR- Rise for good

. Education

. Health

. Environment

41 Diversity & Inclusion

42 Women Representation @ M&M

Overall Women Population Grade-Wise Women Population

7.4% 8.0% 7.1%

7.0%

6.0% 5.2% 2018 4.4% 5.0% 4.1% 6.2% 3.3% 4.0% (651) 2010 3.0%

5.8% 2.0%

(374) 1.0%

0.0% Entry Level Managerial Senior & Mid Level 2010 2018

The headcount of women has doubled over Women representation has increased in all the years the grades

43 RECRUITMENT of Women

Graduate Apprentice Trainee 30% women Graduate Engineer Trainee 20% women Campus Hire at TechM 55% Women Sales Trainee hire 50% Women in M&M Special Referral Program to hire Women

Focused Lateral & Senior level recruitment

44 SAFETY & TRAVEL Policy

EQUAL OPPORTUNITY Employer policy

WORK LIFE POLICY For flexibility

WORK FROM HOME Policy

PART-TIME Employment

Travel Reimbursement

Secured Rating

Crèche & 26 weeks maternity leave

Sabbatical Policy

Purpose Driven Inspired Leadership Role Modelling for Business for Business Business Transformation Transformation Transformation

Kick Off Leadership Projects (LP) Final Presentation on Leadership Projects Coaching & Mentoring

Session on Partnering Coach Mentor for Women Leaders Alignment Orientation Program for Managers Workshop e-learning & Webinars

Role Modelling + Networking

31 women from M&M embarked on this journey in 2016 & 2017 47 Accolades

1st runners up for our gender diversity practice at the 'Best Innovative Practices for Women at

Workplace' by the United Nations Global Compact Network India 48 Talent Management

49 Mahindra Future Leaders Program

50 Mahindra Leadership University MLU Governing Council Academy of Leadership Development

Innovation Academy

DOMAIN ACADEMIES

Manufacturing Service Excellence IT Businesses Common Functions Businesses • Sales & Marketing • Technical Academy • Service Excellence • Healthcare and Academy Life Sciences • Finance Academy • Manufacturing & Academy Quality Academy • HR Academy

• Sourcing Academy • IT Academy

Rise Leadership Competencies Core Purpose & Values The Mahindra Way 51 Great place to work

52 Build a great place to work!

M&M Ltd., Mahindra Finance, Mahindra Lifespaces: Top companies in Great Place to Work

53 Transformational Work Culture Council (TWCC)

Managing Productivity Gen Y Linked Aspirations Settlements

Build an Contract Ecosystem Labour for Skills Management

54 Internal governance policies

55 Governance policies for employees

Bribery & Corruption • Zero Tolerance Whistleblower • Proactively communicated through posters, emailers, short film (in English & Hindi) • Independent hotline manned by KPMG • Whistleblower Policy regularly reviewed by Board • Cases and action taken reviewed by Corporate Governance Council & Audit Committee • Structures for administration of investigation and other administrative structures set up as per recommendation of KPMG Annual Compliance Module • Affirmation each year by ALL Employees and on joining for new employees Computer Based Training Module • Introduced - Bi-Annual training on the Code of Conduct Ethics & Governance Portal for • Code of Conduct Violations • Gift declarations • Lecture declaration • 24 Governance Policies covering all aspects of the Code of Conduct

56 CSR - Rise for Good

57 Girls, Youth,CSR Farmers

Education Health Environment

Sustainability & Corporate Governance 58 4300 ASC’s in 3000 Girls Supported in 49,000 girls receive Number of government FY18 tablet based N Star Centers schools across 1,35,331 learning 75 12 States

Supported over 300,000 girls till date

59 60 6223 youth trained. 955 Mahindra Pride 9 Mahindra Pride 41,687 trained from Record 100% Classrooms Schools Polytechnics, ITI’s placements. in 9 States & Colleges

MAHINDRA PRIDE SCHOOL : Trained over 91,769 youth till date. 61 FY18 – 2 projects in Beneficiaries in Ballarpur & Ratlam FY18 – 15,651 Lifeline Express

99,056 individuals treated through 19 Lifeline Express projects

62 Project Hariyali

Mahindra FY18 – 1.45 million Hariyali: trees planted 14.94 million trees planted from 2007 till date

63 Awards

Corporate Citizen Socially Aware of the Year 2017 FICCI Road Corporate for the by Economic Safety Analysis & Year 2017 by Times for Nanhi Action Award for Business Kali and Zero Fatality Standard for Integrated Corridor project Zero Fatality Watershed on the Mumbai Corridor’ Project Management Pune on Mumbai Pune Program at Expressway Expressway Damoh, MP

The CSR Journal Excellence Energy and Award for Environment Agriculture & Foundation Rural Global CSR Development for Award for Zero Integrated Fatality Corridor Watershed Project on Management Mumbai Pune Program at Expressway Damoh, Madhya Pradesh 64 65