On the Runway… V S Parthasarathy Group CFO Mahindra & Mahindra Turbulent India Auto and Financial Ready for take World Tractor Results off: Industry futurise Turbulent India Auto and Financial Ready for take World Tractor Results off: Industry futurise A Turbulent World….
Year of Brexit, Change of Leaders The Trans Pacific Geo – political worries (US, UK, France, NZ, partnership flops Activation of Brazil, the largest regional article 50 trade deal S Korea, Philippines) Matters of Interest
Interest Rate Increasing in the USA
Negative Interest Rate in Europe
Japan Slowly Coming Back into Growth Mode Turbulent India Auto and Financial Ready for take World Tractor Results off: Industry futurise INDIA HAS ITS OWN RHYTHM
Lower Utilisation of Industrial Capacities Slower IIP growth
Rising cost of production - WPI Muted Service Sector Growth
Stressed Balance sheets of Banks RBI adopting ‘Neutral’ Stance STILL, GROWTH TRAJECTORY MAINTAINED
Even with Odds, fastest growing economy Reforms push continues
Political Stability & Rural Focus Faster execution & implementation
Health Indicators in Comfort Zone GST closer to implementation date
Stronger FII inflow & domestic investment Turbulent India Auto and Financial Ready for take World Tractor Results off: Industry futurise AUTO INDUSTRY HAS A ‘WHY ME?’ EFFECT
NGT Ban Odd Even
Short term impact of demonetisation BS III to BS IV
Line between UV and PV vanishing Surge in sharing
Uncertainty about GST TRACTOR PREPPING THE FIELD
Doubling farm income by 2022 MSP increase in FY17
Normal monsoons ₹ Budget rural focussed
Irrigation Focussed Investments in Infrastructure
Growth lowered due to demonetisation CV carrying the load, UV had a bumpy ride
M&M M&M Segment Q4 F17 Q4 F16 Growth F17 F16 Growth
Utility Vehicles 62,573 69,082 -9.4% 222,541 222,324 0.1%
Vans & Cars 3,480 3,609 -3.6% 13,589 13,983 -2.8%
LCV < 3.5T 48,165 41,945 14.8% 166,607 154,653 7.7%
LCV > 3.5T 2,211 1,773 24.7% 7,626 6,425 18.7%
HCV Goods (>16.2T) 2,805 1,969 42.5% 6,715 5,705 17.7%
3W 11,544 12,630 -8.6% 52,306 54,975 -4.9%
AS (Dom) Total 130,778 131,008 -0.2% 469,384 458,065 2.5% Tractors had a bumper crop
- Highest ever Q4 market share in last 5 years 45% 44.0% - Highest yearly market share ever
35% 39.3% 25% M&M Market Share 39.2% 15% 37.9% 37.2%
5% 35.5%
-5% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 F13F13 F14 F14F14 F14 F14 F15 F15F15 F15 F15 F16 F16F16 F16 F16 F17 F17F17F17 F17 -15% Industry Growth M&M Growth -25%
-35%
-45% Turbulent India Auto and Financial Ready for take World Tractor Results off: Industry futurise Standalone Financials Quarterly performance
M&M + MVML SNAPSHOT Rs Crs
Q4 FY 17 Q4 FY 16 Volume – FES 50,145 nos. 43,415 nos. 15.5% Volume - Auto 1,38,047 nos. 1,40,509 nos. 1.8%
Net Sales & Operating Inc. 10,612 10,175 4.3%
EBITDA 1,237 1,294 4.4%
OPM 11.7% 12.7% 100 bps
PBT Before EI 1,085 960 13.1%
PAT Before EI 780 685 13.8%
PAT After EI 874 691 26.3%
16 Quarterly performance
M&M + MVML SNAPSHOT Rs Crs
Without BS III impact Q4 FY 17 Q4 FY 16 Volume – FES 50,145 nos. 43,415 nos. 15.5% Volume - Auto 1,38,047 nos. 1,40,509 nos. 1.8%
Net Sales & Operating Inc. 10,691 10,175 5.1%
EBITDA 1,408 1,294 8.8%
OPM 13.2% 12.7% 50 bps
17 SEGMENT REVENUE & RESULT – Q4 AS FES SEGMENT REVENUE SEGMENT REVENUE Q4 F 17 7,613 Q4 F 17 2,767 Q4 F 16 7,477 Q4 F 16 2,345 % Inc/ (Dec) 1.8% % Inc/ (Dec) 18.0% SEGMENT RESULT SEGMENT RESULT Q4 F 17 546 Q4 F 17 467 Q4 F 16 722 Q4 F 16 357 % Inc/ (Dec) (24.4%) % Inc/ (Dec) 30.8%
Other segment revenue is at Rs 371 Crs with Segment result of Rs 24 Crs in Q4 F17
Rs Crs Yearly performance
M&M + MVML SNAPSHOT Rs Crs FY 17 FY 16
Volume – FES 2,63,021 nos. 2,14,173 nos. 22.8% Volume - Auto 5,06,624 nos. 4,94,096 nos. 2.5%
Net Sales & Operating Inc. 41,895 38,888 7.7%
EBITDA 5,656 5,246 7.8%
OPM 13.5% 13.5% Same
PBT Before EI 5,158 4,561 13.1%
PAT Before EI 3,706 3,338 11.0%
PAT After EI 3,889 3,344 16.3%
19 SEGMENT REVENUE & RESULT – F17 AS FES SEGMENT REVENUE SEGMENT REVENUE F 17 27,181 F 17 13,786 F 16 26,345 F 16 11,294 % Inc/ (Dec) 3.2% % Inc/ (Dec) 22.1% SEGMENT RESULT SEGMENT RESULT F 17 2,162 F 17 2,562 F 16 2,623 F 16 1,956 % Inc/ (Dec) (17.6%) % Inc/ (Dec) 31.0%
Other segment Revenue is at Rs 1447 Crs with Segment result of Rs 73 Crs in Q4 F17
Rs Crs 20 Auto Margin
AD + MVML EBITDA Margin AD + MVML EBITDA without MTB
13.6% 14.3% 14.5%* 14.1% 14.1% 15.0% 13.0% 12.8% * 12.6% 12.5%
F13 F14 F15 F16 F17 F13 F14 F15 F16 F17
MTB – Mahindra Trucks & Bus Division
*EBITDA excluding one-time impact of BS III
21 Performance Indicators
Particulars F – 17 F – 16
OPM (%) 13.5 13.5
ROCE (%) 18.3 18.0
EPS (Basic)(Rs / share) 63 55
22 Robust Financial Risk Profile
DE Ratio M&M + MVML Gearing Multiple M&M + MVML
Lower the better Lower the better 2.79 0.77 Net Gross
0.6
1.66 0.45 0.32 0.37 0.46 1.06 0.3 1.06 0.98 0.31 0.82 0.76 0.83 0.82 0.27 0.28 0.21 0.64 0.57 0.19 0.17 0.17 0.15 0.09 0.09 0.02 0.01 0.03 0.00 0.00
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 The Bigger Picture Group View More than the sum of its parts Rs Crs
Dividend Divestment Sub-division Bonus & Sub- division of shares of shares 354
336
6 530 38 0 91 53 121 128 187 357 361 170 100 182 228 114 133 128 162 36 65 87 F06 F07 F08 F09 F10 F11 F12 F13 F14 F15 F16 F17
* Above excludes gain on transfer of investment to group companies
Fruits at regular intervals Great gains from small beginnings Rs Crs Tech Mahindra* MMFSL Mahindra Holidays** 10,579 9,170 2,861
> 10,000x 61x 105x
151 27.5 1.44 Investment Current Value Investment Current Value Investment Current Value * Against original investment of Rs 1.44 Crs ** Includes value of 7.5% stake sale
Ssangyong Mahindra Lifespaces EPC Industries 2x 4,609 3x 3x 218 808
2134 78 277
Investment Current Value Investment Current Value Investment Current Value
** Includes recent stake sale of 7.5% at market price st And list can go on and on…… Note: Market Price as on 31 March 2017 26 Agri Group separated to nurture the crop In $ = INR 67.03
Delivering Farm Tech Prosperity $ 1 bn
154 mn 144 mn
108 mn
F15 F16 F17 ….. Mahindra USA shifting to top gear In $
On the Top Gear $ 1 bn
544 mn 504 mn 357 mn
F15 F16 F17 ….. Mahindra Logistics In $ = INR 67.03
Building scale + GST will be booster $ 1 bn
398 mn 308 mn 287 mn
F15 F16 F17 ….. Mahindra Solar In $ = INR 67.03
Future is Renewable $ 1 bn
126 mn
80 mn 75 mn
F15 F16 F17 ….. Shifting gears
Two wheeler Mahindra Retail
Shift in Strategy Strategic Partnership with FirstCry From ‘Mass Player’ to ‘Niche and Adopted Click + Brick model Premium two wheeler Player’ Our story begins in 1945, withOpens two up men huge opportunities on a mission. Re-sizing and cut down of losses Value Creation
Group Market Cap 164740 F -17 Market Cap (31st Mar17) (Rs Cr) Rs Crs Mahindra & Mahindra 79,928 Tech Mahindra 44,725 MMFSL 17,910 Ssangyong 6,364 Mahindra Holidays 3,845 Mahindra Lifespaces 1,689 Swaraj Engines 1,842 1434 6583 Mahindra CIE 8,034 F - 95 F - 05 F - 17 EPC Industries 399 ST Prices as on 31 March Total 1,64,740 $ = INR 64.88 $ 25.4 bn F-2017 Consolidated Result Financial Highlights M&M Consolidated – FY 17 vs FY 16
Total income PAT after NCI (MI)
Rs. 89,713 crs Rs. 3,698 crs
11% 18%
Rs. 80,983 crs Rs. 3,148 crs Consolidated Segment Report Segment Revenue Financial Services Automotive Real Estate
Segment Revenue 7508 53769 783 620
6986 8% 50464 7% +26%
FY 16 FY 17 FY 16 FY 17 FY 16 FY 17 Segment Result 2283 105 1597 72 964 -40% -6% -31% 2138
FY 16 FY 17 FY 16 FY 17 FY 16 FY 17 Segment Revenue Farm Equipment Hospitality Two Wheeler
Segment Revenue 19043 2284 1500 15039 1168 1602 -22% +27% +43%
FY 16 FY 17 FY 16 FY 17 FY 16 FY 17 Segment Result 2609 220 179 FY 16 FY 17 1982 +32% +23% +21%
-692 -865 FY 16 FY 17 FY 16 FY 17 Other segment Revenue is at Rs 5,521 Crs with Segment result of Rs 117 Crs loss in F17 Beating the Benchmark - Result Speaks
Returns in No. of times & CAGR % As at 31st March 2017
LAST 25 YEARS Last 10 years Last 5 years
M&M 48.9 17% 3.3 12.6% 1.8 13%
Sensex 6.9 8% 2.2 8.5% 1.7 11%
Gold $/Oz 8.3 9% 3.0 11.8% 1.0 0.7 %
Gold $/Oz Sensex M&M Turbulent India Auto and Financial Ready for take off: World Tractor Results futurise Industry Leading the Change – Auto – “Try me”
Continue Innovate Build for Future
Focus on power brands Participation in Rental Car Electric Vehicles - Bolero Powerplus Aggregator ecosystem - Scorpio Introducing gasoline option for - Technically sophisticated Launch of ‘Digisense’ for all our products XUV500 commercial vehicles New business models – Smart Strengthening of LCV & SCV Unique value proposition for Shift portfolio ‘Blazo’ truck customers - Jeeto continues to perform Focus on Global Market - New products in ‘Supro’ Working on launching ICV range brand of CVs. Global design & Development - Success of Bolero big pickup capabiliites Platform level synergies with Ssangyong turnaround Ssangyong for new products Leading the Change – Farm Segment
Continue Innovate Build for Future
Highest Market Share Growth Technologically sophisticated, Globalisation - New markets versatile tractors (Mexico, Brazil, Turkey, Japan) Leadership in existing product markets Expanding the range – 24 HP Enlarging the product domain JIVO tractors - Strategic stake in MAM Double digit market share at - Sampo Roselnew USA Investing in on-line tractor - Hisalrar rental model – Trringo Exploring areas like precision Introduction of ‘Digisense’ in farming tractors Innovation in motion - Driverless Tractor - Artificial Intelligence Mahindra is a microcosm of business models
Rural Play ‘Make in India’ Disruptive Business Farm Mechanisation Models Auto (Partly) Mahindra Defence Mahindra EPC Mahindra Aerospace Mahindra First Choice Wheel Agri business The Bio Agency (TechM) Mahindra Rural Hsg. Fin. Mahindra Rural Hsg. Fin.
Services play Enablers of Economic Emerging Industries growth Tech Mahindra Mahindra Logistics Healthcare Mahindra Holidays Mahindra Lifespaces Mahindra Solar Mahindra Finance Internet of Things Trringo Smartshift Driverless tractors Solar Power
Smart Cities Pininfarina E2o plus Sampo Rosenlew Electric Racing Blockchain Blazo BSA/Java Hirsarlar
GenZe Rise Prize MRV / MNATC Peugeot Motocycles Bio
Tivoli EP100 Aerospace Rise for Good Delivering tomorrow’s future We want to make “Mahindra” a globally admired brand…
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