Mahindra & Mahindra Limited

Delivering Scale
Investor Presentation
August 2023

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 MAHINDRA GROUP OUR DNA

Set Governance Standards Enhance Lives of Communities Tangible Actions on Climate

Structure Rural Greening Ourselves … Net Zero by 2030

▪ Key businesses listed on stock exchanges ▪ 200 agri centers helping 800,000+ farmers ▪ Detailed sustainability plans by business

Code of Conduct ▪ 2 MM+ farmers empowered … Krishe app ▪ FY23: Water positive, 10% Scope 1&2 ↓

▪ Uniform core values and code of conduct Urban/Semi Urban Decarbonizing our Industries

Regulatory & financial compliance ▪ 100,000+ e3Wheelers in major cities ▪ Promoting Industry circularity

▪ Highest standards of disclosure Women Rejuvenating Nature

▪ Reputed audit firm … KPMG ▪ 1MM yrly target for women empowerment ▪ Haryali Initiative : 22MM+ trees planted

Strong Credentials Doing Good Carbon Neutral by 2040

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 H I S T O RY O F VA L U E C R E AT I O N

PAT Lens: History of value creation with accelerating trajectory

PAT* (Rs. Cr.) FY2002-2023

3X in 2 years
CAGR

+75%
10,282
CAGR

-5%
CAGR
4,667
3,347^
+43%
66

FY02 FY14 FY21 FY23

3 * After Exceptional Items after Non-Controlling Interest 2

3 ^ PAT after EI for continuing operations 35
 OUR PATH TO VALUE CREATION

FY22-24
FY21-23

Capital allocation Pivot to growth

(1 year agenda) (2 years agenda)
Strategy − Turnaround or exit loss − Transform Core
making companies − Establish Growth Gems

Commitments 18% RoE 15-20% EPS growth

Purpose and Values

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 C A P I TA L ALLOCATION

1 B 2 PAT^ (Rs. Cr.)

Loss making entities
Turnaround Exit
(26)*

(3,429)

In process FY20 FY23

5 * FY23 PAT is for continuing operations and does not include any losses of exited entities. It excludes hyperinflation accounting impact of Rs 120 Cr for Turkish operations 4
^ International Auto & Farm operations; PAT After NCI, before EI 55
 PIVOT TO GROWTH … TRANSFORMING the CORE

Actions Outcome

• 5 mega launches…Quantum leap UV revenue MS: 13.2% → 19.6%

• Regaining EV leadership; $9.1 Bn valuation (Q4F20) (Q4F23)
Auto

• Strengthened leadership through new

launches and network expansion Market share: 39.4% → 40.7%
Transform

(Q4F20) (Q4F23)
Farm • Farm machinery revenue growth by 40%

• Leadership, Asset quality, Tech and Data GNPA*: 8.4% → 4.5%

• Transformation underway (Q4F20) (Q4F23)
FINANCE

• Early wins in large deals

• Succession plan in place
TechM • Margin transformation to commence in F24

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* Refers to gross stage 3 delinquent contracts 6
 PIVOT TO GROWTH … GEMS

FY22 & FY23 – …and establishing growth gems

Progress made so far Valuation¹ ($ Mn)

On track to achieve target FY20 FY23

67% market share in 3W EV; IFC investment <1002 +630 Mn 734

Unlock OTPP investment to accelerate scale-up <200 +90 Mn 290

Robust launch pipeline with 9 launches; 4000+ Crs GDV acquired 120 +550 Mn 670

Customer & inventory adds, curated customer experience 230 +430 Mn 660
Growth Gems

Growth
Mindset
Integrated logistics play with multiple acquisitions 200 +120 Mn 320

Revenue ($ Mn)
Pivot to decarbonizing of Mobility and Energy 182 +332 Mn 514

Retail scale-up across multiple formats 50 +91 Mn 141

Emerging New launches, distribution scale up and exports 56 +28 Mn 84

Preferred component supplier for Aerospace OEMs 75 +50 Mn 125

7 1. Closing value as of 31-March for corresponding years; 2. F20 Valuation based on rough estimate of Jeeto and 3 Wheelers ICE portfolio 6
Note: For FY20: $1 = INR 74.1; For FY23: $1 = INR 81.7 7
 REIGNITED VALUE CREATION

We delivered, and built foundation for growth

Return on Equity EPS Market cap*

in INR 92 in INR '000 Cr.

+6.1 pts 19.9% 144
1.9X 1.7X

13.8% 49 99
84
30

4.4%

FY19 FY21^ FY23 FY19 FY21^ FY23 FY19 FY21 FY23

Enablers

Data & Customer

Purpose Talent Synergy
Technology Experience

8 *M&M Limited market cap; Closing value as of 31 March for corresponding year for market cap 7
^Considering continuing operations 8
 VALUE CREATION PATH FORWARD

Opportunity today?

India is well positioned Mahindra portfolio is We are poised to make

across global aligned with India growth world class products
macrotrends at scale … Global play

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 INDIA GROWTH OPPORTUNITIES

India will add $4.2 Trillion to its GDP by 2030

Sectors mapped to macrotrends Sector contribution to GDP growth ($ Bn)
FY23 FY30

Consumer, lifestyle and eCommerce 740 +1185 1925

Agriculture solutions 540 +415 955

Presence in Sectors

Manufacturing and capital goods 400 +430 830

Financial services 180 +280 460

Logistics and mobility 140 +180 320

Green energy 100 +120 220

Technology solutions 55 +100 155

Health and wellness 50 +60 110

No Presence

Infrastructural development (Construction, Utilities, etc.) 960 +1115 2075

Others (Information & communication, Education, etc.) 235 +310 545

10 Note: Others includes Information and communication ($132 Bn), Education ($115 Bn), Extraction ($33 Bn), Telecommunications ($26 Bn), Publishing and broadcasting activities ($7 Bn)
Source: Oxford Economics 9
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 MAHINDRA PORTFOLIO ALIGNED WITH INDIA GROWTH

Sectors mapped to macrotrends Current portfolio

Core Growth Gems

Consumer, lifestyle and eCommerce

Agriculture solutions
Presence in Sectors

SUVs LCVs
Manufacturing and capital goods

Financial services

Logistics and mobility

Green energy

Technology solutions

Health and wellness No intended play at present

No Presence

Infrastructural development (Construction, Utilities, etc.) No intended play at present

Others (Information & communication, Education, etc.) No intended play at present

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Note: Others includes Extraction, Publishing and broadcasting activities, Education, Telecommunications, Information and communication 10
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 OUR PORTFOLIO … TODAY

AUTO SERVICES
SUVs AND LIGHT
COMMERCIAL VEHICLES
FINANCIAL TECHNOLOGY
LAST MILE MOBILITY

ICONIC MOTORCYCLES
HOSPITALITY REAL ESTATE

TRUCKS & BUSES

AUTO COMPONENTS
LOGISTICS
FARM AUTO RECYCLING

TRACTORS AND AGRI

SERVICES
RENEWABLE ADVANCE PLATFORMS
ENERGY AND AEROSPACE
FARM MACHINERY

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 SERVICES SIGNIFICANCE

PAT'02* (Rs. Cr.) PAT'23* (Rs. Cr.) CAGR

1,290
Auto 41
(Core Auto 2,620 Cr**)
18%

Farm 30 3,950 26%

Services
(IT, Financial, Logistics, (5) 5,042 ++
Holidays, Real Estate, Etc.)

Why Services?
• Brand, Governance premium, Synergies with Core, Market reach and Talent
• Significant value creation^ of ~ Rs 47K Cr over last 20 years
• Positioned to capitalize on macro trends driving growth in India (& globally)

* After Exceptional Items after Non-Controlling Interest

13 ^ PAT after EI for continuing operations
** Core Auto here refers to consolidated Auto PAT before EI. EI items such as write-off in trucks and buses division, exit in PMTC result in 1,330 Cr reduction in Auto PAT for F23. 152
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 STRATEGIC IMPERATIVES

FY25 - 27
FY22 - 24
FY21
Deliver Scale
Capitalize on Market
Leadership
Pivot
Unlock full potential
Capital to growth
Allocation 5X growth challenge

Disciplined capital
allocation

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 DELIVER SCALE

Auto Farm Services

SUVs LCVs
Trucks & Buses

Capitalize on Market Leadership Capitalize on Market Leadership Unlock full potential

Growth Gems

5X Challenge
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 CAPITALIZE ON MARKET LEADERSHIP … AUTO & FARM

AUTO FARM

Customer obsessed brands Build a domestic fortress

Propel ICE SUVs with cutting edge products Significantly grow international business

Pioneer category creative E SUVs Pioneering technology leadership

Build a CV Moat Scale Farm Machinery India exponentially

Go global Leverage partnerships

1. At consolidated level
16 2. SUV Revenue market share
3. Does not include M&A 15
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 UNLOCK FULL POTENTIAL … MAHINDRA FINANCE & TECH M

MAHINDRA FINANCE Tech Mahindra

Improve asset quality Drive 300 bps margin expansion

Lead the market and drive 5G proliferation

Digital transformation

Grow new age offerings

Growth through diversification

Augment Deep-Tech

High-impact Ecosystem partnerships Drive synergy from portfolio companies

1. At consolidated level
17 2. SUV Revenue market share
3. Does not include M&A 16
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 5X CHALLENGE FOR GROWTH GEMS

Strategic Imperatives

Launch 10+ products/upgrades with best-in-class powertrain efficiency and design

Unlock Scale-up from 1.5 GW to 7.0 GW by F27 with value unlock through InvIT structure

Focus on key markets (MMR, Pune and BLR) through bock-bluster launches (15+ annually)

Double the cumulative room inventory from 5,000 in FY23 to 10,000 by FY30
Growth Gems

Growth
Mindset
Launch integrated Tech stack (LogiOne) to create transformative and differentiated tech capabilities

Become largest player in organized vehicle recycling with target market share of ~25% by FY28

Position Car&Bike as India’s leading ‘content to commerce’ brand for cars and bikes

Emerging New launches, distribution scale up and exports

Preferred component supplier for Aerospace OEMs

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 5X CHALLENGE = SIGNIFICANT VALUE CREATION

What does 5X mean?

730 3.7 Bn

670 3.4 Bn

660 3.3 Bn

320 1.6 Bn

290 1.5 Bn

170 >1 Bn

170 > 1 Bn

> 1 Bn

> 1 Bn

Total = 2.9 Bn Total = ~17 Bn

x Valuations in $Mn as on 31-Mar-2023
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 DISCIPLINED CAPITAL ALLOCATION

Prioritized based on
Annual and Quarterly Scrutiny by business
alignment with group
Capital Allocation leadership, Strategy,
focus areas, value
Process CFO & CEO office
creation potential, ROE
Next step –
Short List
Long List deep dive

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 SUMMARY … OUR ASPIRATION

Deliver Scale Consistent delivery on commitments

ROE % Commitment
1 Leverage market leadership
19.9%
+6.1 pts
: Differentiated offering in SUVs
13.8%
: Leading product innovation
18%

2 Unlock full potential 0.3%

: Diversified portfolio & stable asset quality
FY19 FY20 FY23
: Grow new age offerings while executing well
EPS (INR)
92
3 Growth Gems 5X
~1.9X
49
15-20%

4 Disciplined Capital Allocation 1

FY19 FY20 FY23

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THANK YOU

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 M&M Best performing stock in NIFTY 50 since 2002*

1st in last 20 years 2nd in last 1 year

Company TSR% Ranking Company TSR% Ranking

Mahindra 27% 1 ITC 68% 1
Britannia 27% 2 Mahindra 57% 2
Dabur India 26% 3 Coal India 41% 3
Bajaj Holdings 26% 4 NTPC 34% 4
HCL Tech 25% 5 Britannia 32% 5

Sun Pharma 25% 6 Eicher Motors 21% 6

NIIT Lim. 25% 7 IndusInd Bank 18% 7

HDFC Bank 24% 8 L&T 17% 8

L&T 24% 9 ICICI Bank 16% 9

Tata Chem. 24% 10 HUL 15% 10

Nifty50 companies considered at the point in time (20, 5, and 1 year back as on 31st March of the corresponding years)
23 Note: TSR stands for Total Shareholder Returns, calculated as capital gains (increase in stock price) + dividends adjusted for stock splits, bonus issues, etc. TSR returns taken as avg. of 22
monthly closing of Jan, Feb and Mar for the corresponding years. 23
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 VA L U E C R E AT I O N … A C C E L E R AT E D i n F 2 3

Market cap of M&M +45

(Rs. kCr.)
+57

144
+42
100

43
1
FY 2002 FY 2012 FY 2022 FY 2023

NSE Market Cap* 6 61 262 243

(Rs. Lac Cr.)
Incremental market cap created by Mahindra Group in F23 is comparable to the
incremental market cap created in the last decade

24 * Closing value as of 31 March for corresponding year 23

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 CONSOLIDATED M&M RESULTS: Q1F24

Rs Cr

Revenue PAT

33,892 19% 60%

3,508
28,414

2,196

Q1 F23 Q1 F24 Q1 F23 Q1 F24

Strong operating leverage in Auto and capital allocation actions

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 PAT Q1F24

CONSOLIDATED M&M Rs Cr

Q1 F23 Q1 F24 Q1 F23 to Q1 F24

60%
Auto 462 1,401#

169 3,508
205
Farm 993 1,198
KG Mobility 405
(SYMC)

Services 740 909 2,196 533

TechM 320 195

MMFSL 125 188

Growth Gems & Others 295 527

Total 2,196 3,508

PAT (Q1 F23) AUTO FARM SERVICES PAT (Q1 F24)

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# Includes benefit from KG Mobility re-listing: 405 Cr 26
 FINANCIAL RESULTS: Q1F24

STANDALONE M&M Rs Cr

Revenue EBITDA PAT

24,368 23% 46% 98%

3,547
2,774
19,813
2,422

1,404

Q1 F23 Q1 F24 Q1 F23 Q1 F24 Q1 F23 Q1 F24

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 NET CASH GENERATED F22 – Q1F24
Rs Cr Rs Cr
STANDALONE M&M + MEAL

Auto Farm Services Total RsCr

Rs Cr

+ Inflow 13,129 6,933 5,611 25,673

Deployment (9,058) (2,359) (415) (11,831)

- Capex (6,000) (1,852) (7,852)

- EV: MEAL net& (767) (767)

- Investments

Clean up (Cat C) (1,212) (1,212)

Ongoing (1,079) (507) (415) (2,001)

Net cash generated$ 4,072 4,574 5,196 13,842

$ Net cash generated before dividend payout and debt repayment

& EV MEAL net denotes spends at MEAL less PE funds raised. M&M funding into MEAL is eliminated in M&M+MEAL level
28 $ Excludes ICDs to Susten & MOICML. Deployment classification into business segments is based on current operating framework and subject to future changes. .
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 CASH DEPLOYMENT F22-F24
Rs Cr Rs Cr

RsCr
Rs Cr

Base Invt Change Total Comments

Auto capex (excl MEAL^) 7,900 +1,600 9,500 Capacity & Regulatory

MEAL Investments 2,075 +1,125 3,200

Farm capex 3,400 - 3,400

Auto & Farm Investments* 1,500 +500 2,000

Group Cos. Investments 2,700 (1,100) 1,600 External investor funding

Monetization & Partnerships (2,500) (1,300) (3,800) Value creation

Total 15,075 +825 15,900

SAFE HARBOR STATEMENT: “Certain statements with regard to our future growth prospects are forward-looking statements,
which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-
looking statements.”
Does not include any investments for inorganic growth
^ MEAL stands for Mahindra Electric Automotive Limited
29 * excluding Ssangyong 28
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