Analyst Meet

PN Shah
May 30, 2013
Copyright 2012 Mahindra & Mahindra Ltd. All rights reserved.

M&M Automotive Sector: 10 years of growth

CAG R20 . 5%
483 563

CAGR 20 .5 %
298

377

231 117 145 149

178

230

87

F0 3

F0 4

F0 5

F0 6

F0 7

F0 8

F0 9

F10

F11

F12

F13

All volumes are in thousand (000) numbers

Source: SIAM, Industry

F13: Business Environment

Many Challenges

Q1 Q2

Q3 Q4

Economic growth IIP

Inflation
Interest rates Exchange Rate

Monsoon situation
Diesel - Petrol price parity Auto Industry growth

Auto Industry : F13 growth segments

Passenger Car Sales 000s
CAGR 12% 1,973 1,528 1,220 2,031 1,895

Indian auto industry : YOY Grow

Utility Vehicles Sales 000s
CAGR 25% 364 315 554

226

273

F09

F10

F11

F12

F13

F09

F10

F11

F12

F13

3W Sales 000s
CAGR 11% 440 350 526 513 538

M&HCVs Sales 000s

CAGR 10% 245 183 323

349 268

F09

F10

F11

F12

F13

F09

F10

F11

F12

F13
4

Source: SIAM, Industry

High Growth in PU Industry (2 to 3.5T)

Degrowth in < 2T (a first in 4 years)
SCV < 2T Sales 000s
CAGR 28% 191 137 92 56 76 82 251 247

LCV 2 to 3.5 T Sales 000s CAGR 36%

110

190

F09

F10

F11

F12

F13

F09

F10

F11

F12

F13

Source: SIAM, Industry

M&M : Amongst Growth Leaders in F13

Over long term and in the Short term
F13 G rowth % F13 G rowth % CAG R (F3 - F13)
Top 15 Auto players F12 (Excl 2W)
Company 1 Company 2 M &M Company 4 Company 5 Company 6 Company 7
-1%
-5%

Top 7 PV players
35%

Top 7 Auto (Excl. 2W)

M &M

26%
4%

M &M

20% 19% 17% 14% 14% 12% 4%

19% 17% 11% 11% 4% 3%

Company 2

Co.2
Co.3 Co.4 Co.5 Co.6

Company 3

3%
Company 4

Company 8 Company 9 Company 10 Company 11 Company 12 Company 13 Company 14 Company 15

-1%

-6% -10% -15% -16% -17% -20%

-15%
-17%

Company 5

Company 6

-20%

Company 7

Co.7

Source: SIAM, Industry

F13: Unique Year for UV industry

F13 likely to repeat for next two years
60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% -20.0%
F02 F03 F04 F05 F06 F07 F08 F09 F10 F11 F12 F13

Car Vs UV Growth %
Car Growth

52.2%

60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0%

M&M Vs Industry Growth %

M&M UV Growth UV Industry Growth

52.2%
30.5%

-6.7%

-10.0% -20.0%

F02 F03 F04 F05 F06 F07 F08 F09 F10 F11 F12 F13

Increased Focus on the UV market

F02
UVs available UVs (MNC make) Price range (Rs. Lac) 16 2 4-8

F13
40 25 5 25

80.0% 70.0% 60.0% 50.0% 40.0% 30.0%

Changing Dynamics of UV Segment

Indian OEM Share MNC OEM Share

57.5% 42.5%

UV / (UV + Cars)
Source: SIAM, Industry

17%

23%

20.0%
F02 F03 F04 F05 F06 F07 F08 F09 F10 F11 F12 F13

F13 Automotive Sector Performance:

Growing against all odds

F13: M&M AS Total volume growth

563,422

483,1 63

F12

F13

F13: M&M Domestic volume growth

Segments UV Vans Cars (Super Compact) F13 F12 Growth 30.5% 22.6% - 14%

263,925
31,437 15,344 39,911 102,885 65,510 8925 2977

202,217
25,644 17,839 53,895 73,134 67,440 10328 3490

SCV (<2 T)
LCV (>2 to <3.5 T) 3W LCV (>3.5T to <7.5T) MHCV (>16.2 T)

-25.9%
40.7% - 2.8% -13.6% -14.7%
10

M&M Domestic Market performance

Segments F09-F13 F09-F13 F13 F12 CAGR Industry CAGR M&M Market Share Market Share

UV Vans Cars (Super Compact) SCV (<2 T) SCV (2 - 3.5 T) 3W LCV (>3.5T)

19.66% -1.29% 5.25% 9.01% 10.32%

19.93% 2.71% 16.83% 8.03% 18.36%

47.70% 13.2% 6.80% 16.10% 54.00% 12.20% 10.3%

55.60% 10.9% 9.50% 21.50% 66.40% 13.10% 10.4%

HCV

5.99%

2.60%

2.00%
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The Fantastic 4: Legacy Continues

Volume of 238000 + Y-o-Y growth @ 23.6%

12

2nd Highest Selling Premium SUV in India

Premium SUV of the year

13

60,000 Cheetahs on road !

14

F13 New launches in Personal segment

15

F13 New Launches in Commercial segment

16

India's Green vehicle

Indias First IGBC Platinum Rated Automobile Facility

17

Bolero: No. 1 for 7 Years in a row and Growing Stronger

5th highest selling Passenger vehicle in India Sales crossing 100,000 for second year in a row

18

Presence across all price points

1 8 .5 L 1 2 .3 L 8 L 1 1 .5 L 1 4 .7 L 2 0 .6 L

7 .4 L

1 0 .8 L

5 .9 L

7 .7 L

6 .7 L 5L

7 .4 L 10L 1 2 .5 L 15L 20L

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Presence across all price points

5 .5 L 6 .2 L

3 .7 L 3 .5 L 3 .7 L

38 L 5 .5 L 4 .1 L 4 .5 L

3 .4 L
1 .9 L

1 .6 2 L 1 .6 9 L 1L 2L 3L 4L 5L 6 .2 L
20

International Market Performance

21

F13: M&M International Market Performance

High growth in H1, Slowdown in H2

H1F13

H2 F13
29,176 18,190 16,220 14,226 12%

F13
32,456 11%

12,956 40%

H1F12

H1F13

H2 F12

H2 F13

F12

F13

F13 Growth Markets

South Africa Chile Nepal 57% 48% 47%

F13 Concern Markets

Sri Lanka Bangladesh Bhutan 18% 63% 77% Mkt. drop + duty impact Mkt. drop Regulation for import payment

22

F13: M&M International market highlights

Chile clocks 5000+ retail sales
Mahindra fastest growing brand in South Africa
Mahindra Rated The Best Budget Pick up By Leisure Wheels Magazine In Mid Category Range in SA

23

Superlative Growth by design

24

Customer Satisfaction Performance

JD Power
2012 CSI 2012 TCS

TNS

JD Power
2012 IQS

Most improved brand XUV500 ranked No. 1 for 2012 with Renault Duster 5th Rank (11th in 2011) Bolero ranked No.1 with Toyota Innova

First time M&M product is under 100 PP100V

25

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

26

Enhancing Customer Experience

Digital Kiosk at Dealerships

Sales Through Digital Tabs

Interactive Digital Experience at Expos

Value Added Products

Qwik Service Van

XUV5OO Blue Sense App

27

28

Mahindra Adventure

ASEAN Rally

29

Making Impact through Social Media

Largest Auto community in India

10 Million+ Fans like this.

20 million+ views on

30

Extending Tie-ups, Enhancing Access

+
Broad basing the Finance, tie-ups with 16 financers across India

31

Sustainability
Sustainability
GRI Score: 86%

First Prize in National Energy Conservation Award 2012 7 years in a

32

Awards and accolade

Car Maker of the Year, Zigwheels

Scorpio Enters Hall of Fame NDTV

Manufacturer of the Year Bloomberg NDTV

Most innovative Company, Business Standard

Excellence in Quality Practice Asian quality

Supply Chain Excellence

National Energy Conservation

33

Financial Performance

34

Automotive Division + MVML

Segment Revenue (Rs. Crores)
26489 19794 2157

Segment Results (Rs. Crores)

3118

F12

F13

F12

F13

35

Thank You

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Copyright 2012 Mahindra & Mahindra Ltd. All rights reserved.

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